If you have not yet begun drawing money from your pension, you can contribute up to 100% of your earnings to your pension each year or up to the Annual Allowance of £60,000 (2025/26). This means the total sum of any personal contributions, employer contributions and government top up received, can’t exceed the £60,000 annual pension allowance.
Contributions that exceed your annual salary or the £60,000 allowance are subject to an annual allowance charge in line with income tax.
If you aren’t employed or earn under £3,600 annually then the most you can pay into a pension and receive tax relief is £2,880, with £720 of tax-relief added (totalling £3,600).
If you have an income of over £260,000, including pension contributions, your annual pension allowance may be reduced. Additional rate taxpayers are most affected as for every £2 of income over £260,000, their annual allowance decreases by £1.
If you have already begun drawing a pension, the annual allowance for contributions under the money purchase annual allowance (MPAA), may be capped at £10,000. You can find out more about
MPAA on the Money Advice Service website.
