Can I top up a pension pot with my rental income?

In Crediton, a 72-year-old individual is exploring options to enhance their retirement savings. They possess a small occupational pension, a state pension, and income generated from rental properties. Currently, they have a sum of money in their defined contribution pension account that they do not require for immediate expenses. This situation prompts them to consider the possibility of making additional contributions to their pension pot. Defined contribution pensions allow individuals to build a retirement fund in a tax-efficient manner, which can later be utilized for income during retirement. The individual is informed that topping up their pension is permissible at any age, providing them with the flexibility to enhance their retirement savings as they see fit. This is particularly relevant for those who may have surplus funds from other income sources, such as rental properties. However, it is crucial for the individual to understand the implications of their age on pension contributions. Once they reach the age of 75, they will no longer be eligible for tax relief on any contributions made to their pension. This limitation serves as an important consideration for their financial planning, as it may influence the timing and amount of any additional contributions they choose to make. In conclusion, while the individual has the opportunity to top up their pension pot, they must be mindful of the age-related tax relief rules that apply. This knowledge will help them make informed decisions regarding their retirement savings strategy.