One of the good things about pension saving is that you get tax relief on your contributions. In other words, the income tax you would have paid on your earnings gets added to your pension savings instead.
You get tax relief as long as:
- the combined contributions from you and your employer
- to all the pensions you save into in a tax year, including our Scheme and any personal pensions you’re saving into
- total £60,000 a year or less
This is called the annual allowance.
You can contribute up to 100% of your salary towards your pension savings and still get tax relief, as long as the combined contributions from you and your employer are below the annual allowance. This applies to all the pension schemes you’re actively saving into, including our Scheme and any personal pensions you have.