Guides · tax year 2026/27
Pensions, explained
How workplace pensions, personal pensions (including SIPPs) and the State Pension work, how tax relief and the allowances apply, and when money can be taken out.
Figures checked against GOV.UK and other official sources on
- Pension annual allowance
- £60,000
- Most that can be paid into all your pensions in a tax year before a tax charge. Tax relief is also limited to 100% of your earnings.
- HMRC: Pension schemes rates and allowances, checked
- Full new State Pension
- £241.30 a week
- For people who reach State Pension age on or after 06/04/2016. The amount you get depends on your National Insurance record.
- GOV.UK — The new State Pension: what you’ll get, checked
- State Pension age now
- 66
- For people born from 06/10/1954 to 05/04/1960. People born from 06/04/1960 to 05/03/1961 reach it at 66 plus 1 to 11 months.
- legislation.gov.uk: Pensions Act 1995, Schedule 4 (pensionable age), checked
- Minimum pension age from 06/04/2028
- 57
- Set by the Finance Act 2022. Some members with a protected pension age, and uniformed services schemes, keep a lower age.
- legislation.gov.uk: Finance Act 2022, section 10 (increase of normal minimum pension age), checked
7 pension guides
- Pension basicsWhat is a pension and how does it work?A pension is a long-term way of saving for retirement, with tax relief on money paid in and limits on when it can be taken out. In the UK there are three main kinds: workplace pensions, personal pensions (including SIPPs) and the State Pension.Read the guide
- Workplace pensionsHow does a workplace pension work?Employers must automatically enrol eligible workers aged 22 to State Pension age who earn at least £10,000 a year into a workplace pension. Under automatic enrolment at least 8% of qualifying earnings goes in, with at least 3% from the employer.Read the guide
- SIPPs (self-invested personal pensions)What is a SIPP?A SIPP (self-invested personal pension) is a personal pension in which you choose the investments yourself. Contributions get tax relief: the provider adds 20% and higher-rate taxpayers can claim more.Read the guide
- Pension tax relief and allowancesHow does pension tax relief work, and what are the limits?Pension contributions usually get tax relief at your highest rate of Income Tax, within limits. For 2026/27 the annual allowance is £60,000, the money purchase annual allowance is £10,000 and the most most people can take tax-free is £268,275.Read the guide
- The State PensionHow much is the State Pension and when can I get it?The full new State Pension is £241.30 a week in 2026/27, and the amount you get depends on your National Insurance record. State Pension age is rising from 66 to 67 between 2026 and 2028.Read the guide
- When you can access a pensionWhen can I take money from my private pension?The normal minimum pension age, the earliest most people can take money from a workplace or personal pension, is 55. It rises to 57 on 06/04/2028 and is separate from State Pension age.Read the guide
- Lifetime ISA and pension comparedHow do a Lifetime ISA and a pension compare for retirement saving?A Lifetime ISA and a pension both add a government top-up to money saved for later life, but they differ on who can pay in, when the money can be taken out and how withdrawals are taxed. This guide sets out the rules side by side; which fits depends on individual circumstances.Read the guide
Funds for a pension
Fundology lists UK-listed funds with their charges in pounds, returns before and after inflation, and holdings. Which fund suits anyone depends on their circumstances; the lists are information, not a shortlist.
This is information, not advice. For free, impartial guidance, MoneyHelper (backed by the government) can help; for a personal recommendation, speak to a regulated financial adviser.