How much to Contribute into Pensions?

Annual Allowance
For 2024/25, the maximum you can contribute is the lower of your earnings or the annual allowance of £60,000 per year

Carry forward

• You can pay more than the limit and claim tax relief, if you carry forward any unused allowance in the last 3 years starting from 2021/22 plus the current year. This means you can pay up to £160,000 into your pensions but anything above this, you will pay a tax charge.

• You can only claim tax relief on the previous 3 years if you were part of a pension scheme during that time. Also, the allowances must include the contributions (employer or employee) made into your pension plus the tax relief you received from HMRC.

• Another condition for carry forward, is that you cannot claim tax relief on contributions that is above your earnings in any tax year.

There are numerous rules that can apply and might be different depending on your circumstance. At Oasis Wealth we will prepare a detailed review with you and provide financial advice where best to place your money.

Life time Allowance
The lifetime allowance will however, be fully abolished from the 2024 to 2025 tax year, through a future Finance Bill.

As you can see from above, the question of retirement planning is not simple, it takes into account many considerations. Getting an finance expert opinion from a qualified adviser can be highly helpful. Contact us to Learn More

The value of pensions and the income they produce can fall as well as rise. You may get back less than you invested.

Tax treatment varies according to individual circumstances and is subject to change.