How much can I pay into a pension?

There is no limit to the amount you can pay into a pension.

But there is a catch - the amount of tax relief you will receive on your contributions is limited.

The maximum contribution you can make to a pension every year to qualify for tax relief is either £3,600 or 100% of your relevant UK earnings in the current tax year - whichever is the greater. You also have to be a 'relevant UK individual' to qualify.

A relevant UK individual is someone who was resident in the UK at some time during the previous five tax years and was a member of the pension scheme, or has earnings from overseas Crown employment subject to UK tax.

100% of relevant UK earnings sounds attractive because of the tax advantages, but in reality there are limits which may apply, known as the Annual Allowance, the Money Purchase Annual Allowance and the Tapered Annual Allowance.

Disclaimer

The information, money-saving tips, tools and techniques provided are for guidance purposes only and do not constitute financial advice.

The information, money-saving tips, tools and techniques provided are for guidance purposes only and do not constitute financial advice. Where we provide links to third-party websites we are not responsible for their content. It is therefore important you carry out your own independent research.

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