Help your pension savings grow
Pension plans are one of the most tax-efficient ways to save for your future, so you might consider increasing your regular contributions or making a one-off pension contribution if your budget allows. You can do this at any time, but the end of a tax year may be a good opportunity to take advantage of your pension's tax benefits.
The government gives tax incentives to pensions, known as tax relief, to encourage you to save more. To make the most of your allowances and tax relief before the end of the 2024/25 tax year, you might consider making a one-off pension contribution.
A tax year runs from 6 April one year to 5 April the next year. The value of your investments can fall as well as rise and you may not get back the amount invested. Tax relief depends on your individual circumstances, where you live in the UK and could change in the future. You can take any pension benefits after age 55, increasing to age 57 from 6 April 2028.
Pension savings limits
There’s no limit on the amount you can save into a pension. However, there’s a limit on the amount you can save each tax year before you stop receiving tax relief. For the tax year 2024/25 you can get tax relief on contributions up to a maximum of £3,600 or 100% of your earnings, whichever is greater.
There’s also a limit to the amount you can pay before you have to pay a tax charge. This limit is called the annual allowance and for the 2024/25 tax year it’s £60,000 – after that a tax charge may apply to your contributions.
If, like most people, you haven't exceeded these limits you can make use of the tax incentives on your pension by paying a one-off pension contribution or increasing your regular contributions. Your tax savings will then be invested until retirement.
For more information on allowances it may be best to speak to a financial adviser or read our pensions and tax - know your limits article. You may also be able to see how much you've already saved by logging in to our mobile app.
Tax year end deadline for contributions
The end of the tax year is 5 April. If you want to make a one-off pension contribution to your Royal London plan for this tax year, and your budget allows, you can do so up to and including 5 April. It will count for this tax year's annual allowance. If we receive your contribution after then, it will be added to your plan and applied against your annual allowance for the next tax year. You can make contributions to your plan at any time.
It's important to remember that if you’re posting any documentation or if you need to speak to a financial adviser, you need to allow enough time before the tax year ends. You can speak to your financial adviser or get in touch with us using the details below to find out more.
Get in touch
If you have a Pension Portfolio plan and you’d like to speak to us about one-off pension contributions, please phone us at 0345 603 0154
If you’d like to speak to us about regular contributions please phone us at 0345 850 8953.
Our lines are open Monday to Friday, from 8am to 6pm (excluding Bank Holidays).
If you have a workplace pension plan and you want to exchange a bonus for a pension contribution, your employer may be able to help with next steps.
You may also be able to make one-off pension contribution using our online form, depending on the type of plan you have.
More about pensions and tax
