Make the most of your pension annual allowance
Save tax-efficiently to make the most of your money.
Don't pay more tax than you need to
You want to make the most of whatever money you're putting aside for your future. An effective way to do this is to use your annual allowance.
What is the annual 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.
For members with salary-related benefits it’s the value of the increase in those benefits that generally counts. In the current tax year, the standard annual allowance for most people is £60,000. This applies across all your pension savings, not per scheme. Remember, tax treatment and eligibility to invest in a pension depend on personal circumstances. And all pension and tax rules may change in future.
The annual allowance explained
This video explains how the annual allowance limits the amount of tax relief you get on pension contributions from both you and your employer.
Watch time: 2 mins and 35 seconds
Annual allowance calculator
You can use our calculator to find out if you have any unused annual allowance or if you may have exceeded your annual allowance. You simply need to provide details of your earnings and pension contributions, plus any other income you pay tax on.
Once you’ve entered these into the calculator it will display an estimate based on the information you’ve given us.
Annual allowance guides
Our handy guides can help you understand what pension allowances and limits might apply to you, and how you can use them to save tax-efficiently.
Download our annual allowance guide
Read our guide to find out more about how the annual allowance works and how much tax relief you could benefit from through your contributions.
What to do if you need to pay an annual allowance charge
Read our factsheet to help you understand the annual allowance charge and how it can be paid.
Take the next step to make the most of your allowances today
Call us
If you want to make a one-off contribution to your pension, call us Monday - Friday, 8am to 6pm
Other related allowances
Learn about other allowances relating to the annual allowance that could affect you depending on your circumstances.
Expert insights
Read articles from experts to learn more about how you can save for the future tax-efficiently, and maximise your pension savings.