A pension is one of the most tax efficient ways to save, subject to certain limits.

The Annual Allowance (AA) is the total amount you can save into your pension(s) in a year, before being subject to extra tax. From 6 April 2023, for most people, this is £60,000.

If you have unused allowance from the last three years, you could save more than £60,000 without paying additional tax.  Details about how much of your AA you have used are shown on your annual benefit statement. If you exceed the AA, we will send you a Pension Savings Statement in October.

Different rules apply if you have a ‘threshold income’ of more than £200,000 or ‘adjusted income’ of more than £260,000.