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Pensions are a 'tax advantaged' method of saving funds for your retirement. This 'At a glance' guide provides you with the key contribution limits and savings allowances. Subscribers, follow the links below to more detailed guides.

Why pay into a pension?

Personal pensions

You may pay contributions into your own pension scheme up to the level of your Relevant earnings in the tax year.

Pension savings are subject to both annual and lifetime contribution limits.

Year

2020/21

£

2019/20

£

2018/19

£

2017/18

£

2016/17

£

Annual limit 40,000
Lifetime limit 1,073,100 1,055,000 1,030,000 1,000,00 1,000,000

 

Employer contributions

Pensions auto-enrolment

See Pensions auto-enrolment contribution rates and thresholds

Planning and pitfalls:

 

Further topical guides (for subscribers)

Auto-enrolment: detailed guide to workplace pensions
This guide looks at the key features of auto-enrolment, who is affected, what employers need to do, and the relevant timescales.

DIY: Small Self Administered Schemes
An SSAS can be set up by an employer to provide benefits for members, usually on a defined contribution (money purchase) basis and run by solely by member trustees. You can create and run your own SSAS.

Pensions: tax charge for excess contributions

When does a tax charge arise for excess contributions? What are taxpayers' responsibilities under Self Assessment? 

Pensions contributions: personal v company?
Is it more tax efficient to pay pension contributions personally or via your own company?