![]() ![]() Private and workplace pensions can be good ways of saving for retirement. For 2021/22 you can get tax relief on your pension contributions up to 100% of your salary or £40,000 (whichever is lower).įor more information about paying into a pension and tax relief, see our page on making pension contributions. ![]() Higher and additional rate taxpayers can claim a further 25% and 31% respectively through their Self-Assessment tax returns. ![]() You get tax top ups of 25% on contributions that you make, which means that if you pay £100 into your pension, HMRC adds another £25, bringing your total contribution to £125. Your provider will automatically claim this at the basic rate and add it to your pension pot. You get tax relief when you pay into a private pension. You can find out more about setting up a pension in our Pension Academy video. Our PensionBee plans are private pensions that you can manage easily online. You can find more information about this on our page about cashing in your pension. When you reach the age of 55, you can take your private pension as a lump sum, use it to buy an annuity (a guaranteed income) or leave it invested and take out cash amounts when you need to via drawdown. When you start your pension, you’ll probably get a choice of pension funds to select from, based on how much risk you’re willing to take. The money you put into your personal pension will usually be invested in a range of assets like shares, bonds, property and cash. monthly) or make one-off payments into your fund, and your pension provider will add tax relief. You can set up regular contributions (e.g. Private pensions work similarly to workplace pensions but are set up by you rather than your employer. Your browser does not support HTML5 video tags ![]()
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January 2023
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