How can I see my pension contributions?

There are a few different ways to do this. If you are employed, and you pay into a workplace pension, then you might find this information on your monthly payslip. This will show how much you are paying in, and possibly how much your employer pays in as well. Another way is to look at your pension itself; many pension providers offer online access to your details, and from there you can see total contributions going into your pension. It’s a good idea to set this up as you will also be able to see how your money is invested. If you are self-employed, you may be paying via a direct debit, or possibly with the help of your financial adviser or accountant, who can provide details of contributions. As mentioned above, it is worth registering online with the pension provider, as this is a quick way to see your contributions and how much your pension is worth currently, and whether it is on track.

What is the minimum pension contribution?

This can vary between pension providers. It is usually best to speak to your financial adviser, the pension company, or your employer to see what your options are.

What is the maximum pension contribution for 2023?

There is no limit to what you can pay into your pension, however the Annual Allowance is set at £60,000 for 2023/24. This is the limit by which you can contribute and receive tax relief. If you contribute beyond this, you could potentially be taxed. The rules around this can be complex, and it’s best to speak to an adviser if you are unsure.

Can I change the amount I contribute to my pension?

Most pension providers offer the option to change your pension contributions. Either contact your financial adviser, pension provider, or your employer if it is a workplace scheme, and they will be able to help alter your contributions.

How are my pension contributions calculated?

There are a few ways to do this, but generally if you are employed and part of your company’s workplace pension scheme, it will be a percentage of your annual salary, usually paid monthly. The percentage will vary depending on the rules in place through your employer; for example if you have been there a certain length of time, or your earnings go above a certain level. Often your employer will contribute in addition. If you are self employed, you will likely need to speak to your financial adviser or accountant who can help look at your contribution levels depending on the amount that you are paid through your business.

Pension Contribution Limits and Allowances

Q: What happens if the Annual Allowance is exceeded?

If you contribute more than the Annual Allowance, your excess contributions will not receive any tax relief, and your excess contribution will also be subject to a tax charge. It is worth noting that you are able to ‘Carry Forward’ up to three years of unused Annual Allowance. So, if you are in a position to contribute beyond your Annual Allowance for the current tax year, speak to your financial adviser who can help to calculate any unused allowance you may have.

Q: How do you know if you have exceeded the Annual Allowance?

You may be notified by HMRC, as any tax charge is added to your taxable income for the current tax year. That said, the responsibility remains with you to declare this via your self-assessment form. To be certain, it is best practice to liaise with your financial adviser, so you are able to take appropriate action in time.

SJP Pension allowances

Pensions are a tax-efficient way of saving for retirement, since you get tax relief all eligible contributions you make. Because of this there are limits on how much you can pay into a pension and still obtain the full tax benefits.

What makes pensions so tax efficient?

For every pension contribution you make, you get at least 20% tax relief. This effectively adds a tax-free cash bonus to money paid into your pension. If you are a higher or additional rate taxpayer, you can claim additional tax relief (40% for a higher rate taxpayer, and 45% for an additional rate taxpayer). It’s up to declare and claim your tax relief if you fall into these brackets, via HMRC.

Like most tax benefits, the annual allowance is capped and it’s important to understand how much you’re entitled to, and how to claim.

The pension allowance

The annual allowance is currently £60,000 (in 2025/26). That’s the maximum amount you can save into your pensions each tax-year and still get the full benefit of tax relief. However, you'll only personally get tax relief on contributions up to 100% of your earnings if your earnings are less than the £60,000 annual allowance, or £3,600 - whichever is lower - in each tax year. You may be able to save more, if you’re able to use Carry Forward.

Your annual allowance is the sum of all pension contributions made – by you, your employer, the government’s tax relief, and any other contributions.

If you have more than one pension – and many people do – be aware that the annual pension allowance is across all your pension savings, not each pension scheme.

If you belong, or have belonged in the past, to a Defined Benefit (also known as a salary-related or final salary) scheme you’ll need to contact the pension provider to check on contributions for that scheme. Your annual allowance will be based on any growth in the capital value of your retirement benefits, not on any contributions. If you’re unsure, just ask your financial adviser to assist you.

Annual Allowance

£ 60000

The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.

The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances.

What is the tapered annual allowance?

The standard annual pension allowance for the 2025/26 tax year is £60,000, but this reduces to an amount between £10,000 and £60,000 if you earn over £200,000. This is called the tapered annual allowance.

If your ‘threshold income’ is over £200,000, and your ‘adjusted income’ is over £260,000 your tax relief will be tapered. The standard annual allowance of £60,000 reduces by £1 for every £2 of adjusted income you have above £260,000. 

Your threshold income is all your income, less your personal pension contributions. Your adjusted income includes all your income plus the amount your employer pays into your pension, or the amount a Defined Benefit pension has grown.

If you’re in any doubt about these thresholds, or tapered allowances in general, don’t hesitate to speak to your financial adviser.

What if I pay in more than the pension allowance?

Keep a close eye on how much you’re putting away, so you don’t go over your annual allowance . If you do go over this you will need to pay a tax charge on the excess.

However, there may be a silver lining in the form of carry forward. If you have not used some or all your allowance from the previous three years, you may be able to carry forward any unused allowance from those years.

You’ll need to use up this year’s annual allowance first but carry forward can give you flexibility if your income fluctuates from year to year.

What is pension carry forward?

Carry forward means you may be able to use any unused pension allowances from the past three years, should you have a bumper year, a big bonus or come into an inheritance. If you’ve had to pause pension contributions at any point – when taking a career break for example – carry forward is a really useful way to catch up on your pension contributions and take advantage of the tax relief on offer. You must use the current years allowance first, have been a member of the pension scheme during the earlier years and have the relevant earnings.

Always speak to your financial adviser if you think you might exceed your annual allowance. Any excess contribution could be taxed in such a way that it could cancel out the tax relief you would have received on the excess amount. You would need to declare any excess on your self-assessment tax return.

Getting advice on pension allowances

Understanding the ins and outs of pension allowances can be complicated, especially if you’re a high earner. We’re always happy to help explain what you can and can’t claim, so you don’t pay more tax than you need to.

Frequently asked questions

What happens if the Annual Allowance is exceeded?

How do you know if you have exceeded the Annual Allowance?

The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.

The levels and bases of taxation and reliefs from taxation can change at any time Tax relief is dependent on individual circumstances.

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Your pension allowance

Your pension allowance

What makes pensions so tax efficient?

The pension allowance

What is the tapered annual allowance?

What if I pay in more than the pension allowance?

What is pension carry forward?

Getting advice on pension allowances

Frequently asked questions

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