Pension allowances and tax benefits
Find out how to make the most of the tax-efficient pension allowances with our handy guides. They can help you understand what allowances and limits might apply to you and how to maximise your pension savings.
Tax relief & Retirement Planning
Tax relief is a government tax-break intended to encourage you to save for your retirement. The amount of tax relief you are entitled to depends on a range of factors relating to your personal situation. We can help you understand more about how the tax relief rules might affect your contributions.
Find out more about tax reliefLump sum allowance
The lump sum allowance (LSA) is the maximum amount of tax-free cash you can take from your pension savings in your lifetime.
Find out more about lump sum allowanceAnnual allowance
The annual allowance is the limit on how much you can save into your pensions each tax-year while still benefiting from tax relief on your contributions, any employer contributions and any contributions made on your behalf by someone else.
Find out more about annual allowanceTapered annual allowance
The tapered annual allowance further limits the amount of tax relief high earners can claim on their pension contributions by reducing the annual allowance. Read more about how this might affect you and the steps you can take to make your contributions more tax-efficient.
Find out about tapered annual allowanceCarry forward
Carry forward allows you to make use of unused annual allowances from the three previous tax years if you have used up your annual allowance for the current tax year, thus increasing the amount of tax relief you can claim. Find out how this works and how you might be able to claim it.
Find out about carry forwardMoney purchase annual allowance
Once you begin taking taxable money from your pension pot using pension freedoms, generally you will be subject to a reduced annual allowance that limits the tax relief that you can receive on future contributions. Find out more about how and if this might affect you.
Find out about money purchase annual allowanceTax allowances - what’s the latest?
Tax allowances are subject to change by the government. Find out more on the latest tax allowances, and how these changes might affect you.
Find out more on the latest tax allowancesTax treatment and eligibility to invest in a pension depend on personal circumstances. All tax and pension rules may change in future.
The minimum age you can normally access your pension savings is currently 55, and is due to rise to 57 on 6 April 2028.