1. Check your annual allowance
The annual allowance is the maximum amount you can pay into your pension each tax year while still receiving tax relief.
For most people, the allowance is £60,000 for the 2026/27 tax year.
Contributions above this will not be eligible for tax relief, and any paid in error will need to be returned to HMRC may be subject to tax charges.
If you have multiple pensions all your contributions are added together.
Tip: You can check your contributions on your pension statements or provider portals to see if you’re approaching the annual allowance.
2. Make the most of tax relief
Your pension contributions usually qualify for tax relief at your highest rate of income tax. If you contribute £8,000 into a workplace pension, it could be boosted to £10,000 with basic rate tax relief automatically added. You will need to claim any additional tax relief via a self assessment.
Basic rate: 20%
Higher rate: 40%
Additional rate: 45%
3. Consider carry forward
If you didn’t use all your annual allowance in the previous three tax years, you may be able to carry forward unused allowance to this year. This can be useful if you want to make a larger contribution before 5 April.
If you want to understand how much allowance may be available, you can check in the Smart Pension app. Don’t forget the maximum you can pay in is 100% of your earnings in the current tax year or the allowance limits, whichever is lower.
4. Check your lifetime allowance, if relevant
While the lifetime allowance no longer applies in the same way for most people, very high pension savers may still need to consider limits on total pension savings.
Exceeding certain limits could result in additional tax.
Holding certain protections may also impact making future pension contributions.
Most workplace pension providers will contact you when you approach key thresholds.
5. Timing your contributions
To make the most of the current tax year:
Add money before 1 April (23:59) to use this year’s allowance with Smart Pension.
This includes salary sacrifice contributions from your employer or personal top-ups.
Contributions processed after the deadline will count toward the next tax year instead.
6. Use tools to plan
Tax year-end is a practical moment to review where you stand. The right tools can help you understand whether you’re on track, and what difference even small changes could make.
Use our pension calculator
If you’re considering paying more in before the end of the tax year, modelling it first can help you decide what feels affordable and worthwhile.
A pension calculator can show you:
How much might you have at retirement
Whether you’re on track for the income you want
The impact of increasing your contributions
The effect of making a one-off top-up before the tax year end
Tip: If you’re saving for your retirement with Smart Pension, sign in to see your future.
Understand the power of compounding
Compounding is how your pension grows over time. You earn returns on your contributions, and then returns on those returns. Over time, even small steps could make a meaningful difference to your retirement savings.
Increasing contributions by 1%
Making one-off payments
Starting earlier rather than later
In summary: A small step today can have a long-term impact
The tax year-end deadline can be a useful prompt to review your pension. Using planning tools helps you make informed decisions, rather than guessing.
Whether you increase your regular contributions, make a one-off payment, or simply check you’re on track, adding to your pension savings means your future gets a boost, and you benefit from free money from the government.
Good to know
This information is for guidance purposes only and is not financial advice. If you need financial advice, you can locate a regulated financial adviser on the MoneyHelper website.