It is well above 50% of my gross salary because it goes in pre-tax and this is very advantageous.
On the whole, the net gain compared to a more normal contribution is a 25% increase in pension+takehome.
However, the downside is cash flow.
I am likely to be 'on paper' FI at 53, but not able to get my hands on the majority of the capital for another two years...
I've considered these options...
- Part-time working or complete one or two fixed term contract jobs in the gap
- Take out a loan(prior to packing in work)
- Remortgage house (prior to packing in work)
Note: I'm in the UK and pensions are fairly flexible to extract from. 25% lump-sum tax-free, then flexible drawdown that can be
below the income tax threshold...