id
A pension is an investment. Its value can go down as well as up and could be worth less than was paid in
Flexible payment options
Open a Personal Pension with as little as £1. There are lots of ways to pay in:
- Set up a monthly payment
- Make one-off payments anytime
- Transfer a pension
You can change or pause payments whenever you like. Transferring may not be right for everyone. A pension is an investment. Its value can go down as well as up and could be worth less than was paid in
The magic of tax relief
For every payment you make, you automatically get basic rate tax relief (20%).
This means every payment gets topped up by the government:
- You pay in: £80
- Tax relief: £20
- You get: £100
If you're a higher or additional rate tax payer, you may be able to claim extra tax relief on your self-assessment.
The maximum tax relief most people can claim is 100% of their salary (up to £60,000). This is called the 'annual allowance'. Even if you're not earning, you can pay in up to £2,880 and still receive tax benefits.
Laws and tax rules may change, and tax treatment depends on personal circumstances.
Tax relief if you're self-employed
If you're self-employed, you may be able to make payments from a business account and claim them as an expense.
Limited company director? Payments count against corporation tax, saving 19-25% depending on your profits.