Pension Annual Allowance Calculator
Calculate your pension contribution headroom for the current and next tax year, including carry-forward from the previous three years.
How Pension Annual Allowance Calculator works
Pension annual allowance
The annual allowance (AA) is the maximum you and your employer can contribute to your pension each year without incurring a tax charge. For 2025-26: £60,000 or 100% of earnings (whichever is lower). Contributions above the AA are subject to an annual allowance charge at your marginal tax rate.
Carry-forward
You can carry forward unused annual allowance from the previous three tax years. To use carry-forward: you must have been a pension member in those years, you must fully use the current year's AA first, and you must have sufficient earnings in the current year.
Tapered annual allowance
The tapered AA applies if your threshold income exceeds £200,000 AND adjusted income exceeds £260,000 (2025-26). The AA is reduced by £1 for every £2 of adjusted income above £260,000, to a minimum of £10,000. Adjusted income includes employer contributions.
Money purchase annual allowance (MPAA)
Once you access pension savings flexibly (flexi-access drawdown), the MPAA of £10,000 applies to future defined contribution pension contributions. The MPAA does not allow carry-forward.
Frequently asked questions
What is the pension annual allowance?
The annual allowance is £60,000 (or 100% of earnings if lower) for 2025-26. This covers all contributions to defined contribution pensions (employee + employer). Exceeding it triggers a tax charge at your marginal rate.
Can I contribute more than £60,000 to my pension?
Yes, by using carry-forward from previous years. If you had unused allowance in the past 3 tax years, you can add that to this year's £60,000. Total headroom with maximum carry-forward could be up to £240,000 (4 × £60,000).
Who is affected by the tapered annual allowance?
High earners whose threshold income exceeds £200,000 AND adjusted income exceeds £260,000. Threshold income is broadly net employment income; adjusted income adds back all pension contributions. If in doubt, speak to a financial adviser.
What is the annual allowance charge?
An additional income tax charge on pension contributions above the annual allowance (including carry-forward). The charge is at your marginal rate — 20%, 40%, or 45%. It effectively cancels out the tax relief on the excess contributions.
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This calculator provides estimates for informational purposes only. It is not a substitute for personalised pension or financial advice. Speak to a regulated financial adviser before making pension decisions.