When an individual pays into a pension, HM Revenue & Customs (HMRC) will 'top up' the contribution by the basic rate of tax. This means that HMRC will put £20 into your pension pot for every £80 you contribute. In addition, higher and additional rate income tax relief is also available (on contributions up to a certain limit each year).

However, the precise rules on pensions are extremely complicated and you should seek further advice on the amount you can contribute without falling foul of the reduced annual allowance charge.

Did you know that it is possible to contribute up to £3,600 gross (ie a £2,880 net contribution) per year into a pension for the benefit of a child or grandchild? What's more, such contributions are ignored for inheritance tax purposes and your children won't be able to access the funds until they retire.

If you are not currently making pension contributions, or are unsure how much you can pay into your pension scheme, you should take independent financial advice.

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We provide integrated assurance, advisory and actuarial services to individuals and organisations on all aspects of pension scheme design, risk management and financial assessment. We work closely with boards of directors, trustees, regulators and stakeholders to deliver effective pension scheme funding solutions and pension risk evaluation and mitigation. Click here for more information on Pensions.

We also provide the following services to high net worth individuals:

  • Actuarial forecasting of retirement benefits
  •  Designing tax efficient funding and investment strategies
  • Reviewing and monitoring existing pension portfolios

If you would like to get in touch with one of our financial advisers to discuss the best way you can provide for you and your family's future, please contact us on

(The information presented here is not a substitute for full professional advice and specialist assistance should be sought in relation to any individual circumstances.)