What is the pension Annual Allowance?
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In short: £60,000 a year. Above that, contributions can trigger an Annual Allowance charge. High earners may have a tapered allowance as low as £10,000.
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Reviewed by Kaiser Khan
The pension Annual Allowance is the maximum that can be paid into your pensions (employer contributions included) in a year before a tax charge applies. For most people it is £60,000 for 2026/27.
If your adjusted income is over £260,000 the allowance tapers down by £1 for every £2 above the threshold, to a floor of £10,000.
Unused allowance from the previous three tax years can usually be carried forward, provided you were a member of a registered pension scheme in those years.
Primary source: gov.uk/tax-on-your-private-pension/annual-allowance
Part of our Pensions & retirement
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