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Annual pension allowance

Important information - please keep in mind that the value of investments, and the income from them, can go down as well as up so you may get back less than you invest. Eligibility to invest in a SIPP and tax treatment depends on personal circumstances and all tax rules may change in the future. You cannot normally access money in a SIPP until age 55 (57 from 2028).

While there is no limit on the amount you can save into your pensions each tax year, there is a limit on the total amount of contributions that can be paid before a tax charge might apply. There is also a limit on the amount of tax relief you can receive on any personal contributions. This is based on your own contributions, any employer contributions and any contributions made on your behalf by someone else.

In the current tax year (2024/25), the annual allowance is capped at £60,000 and applies across all your pension savings (excluding State Benefits), not per scheme. If the contributions to your pensions exceed the annual allowance, a tax charge ('the annual allowance charge') may become payable. This effectively claws back any excess tax relief given at source. If your taxable earnings in the year are below the annual allowance then tax relief on pension contributions from all sources is limited to 100% of your earnings (or to £3,600 if you have no earnings).

Your annual allowance may be reduced if you’ve already taken taxable money from your pension pot (known as the money purchase annual allowance) or have income of £200,000 or more from 6 April 2020 (known as the tapered annual allowance). It may also be possible to contribute more than your annual allowance and still benefit from the tax relief by using unused allowance from up to the three previous tax years (known as carry forward).

Download our guide to the annual allowance

Read our guide to find out how the annual allowance might affect you.

Download our annual allowance guide

Important information - this information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.