How much can I pay into a pension?
You or your employer can usually pay up to £40,000 every year in to your pension, but there are limits to how much tax relief you can receive.
A pension is a tax efficient savings scheme. You receive tax relief on your contributions as you pay in to your pension and your savings have the possibility of growing with minimal tax.
The actual amount you can pay in a tax year for tax relief purposes is the greater of:
- A gross contribution of £3,600 or:
- 100% of your earnings, subject to the annual allowance.
The current annual allowance for most people is at £40,000. Tax relief is only available on contributions paid before the age of 75. If you’re 75 or older you can technically contribute to a pension scheme but your contributions won’t qualify for tax relief.
Where can I find out more?
If you need more information, please contact us. A pension specialist from our team will be happy to help with whatever pensions-related question you have. Our help is always free.