Frequently Asked Questions

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You asked: How much can I pay into my pension per year?

The annual allowance is a limit on the amount that can be contributed to your pension each year, while still receiving tax relief. You can pay in more than these limits, but will not get tax relief on these additional contributions. For the 2019/2020 tax year, the annual allowance will be £40,000.

Taking benefits from any of your defined contribution pension plans will trigger the reduced money purchase annual allowance (MPAA). You will still have an annual allowance of £40,000 in total, but no more than £4,000 can be paid into a defined contribution (money purchase) pension.

If you have total income and employer pension contributions that come to more than £150,000, your annual allowance will be reduced. The standard £40,000 annual allowance will reduce by £1 for every £2 of income you have over £150,000 in a tax year, until your allowance reaches £10,000.

Finally, you can't contribute more than 100% of your taxable UK earnings or £3,600 into a pension each year, whichever is higher.

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