A pension is one of the most tax efficient ways to save, but there are some 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. For most people this is currently £40,000.
If you have unused allowance from the last three years, you could save more than £40,000 without paying additional tax.
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 £240,000.