Putting your money into The People’s Pension
The People’s Pension is a tax registered scheme, which means contributions you make to it can qualify for tax relief. You may pay additional contributions into your pension account.
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Read about making contributions and tax relief on your pension
Under HM Revenue & Customs (HMRC) rules there is a limit on the total amount you can save each tax year into all registered pension schemes and receive tax relief on your contributions. The maximum is 100% of your earnings (up to the annual allowance) or £3,600 gross, whichever is higher.
The annual allowance limit for the current tax year is £40,000. This limit includes all your contributions, tax relief and employer contributions across all your pension arrangements. If you go over this limit, this will result in a tax charge, known as the annual allowance charge. If your workplace pension is your only source of income when you retire, apart from your State Pension, and you and your employer are only paying the pension contributions required by law, it’s quite likely this won’t be enough for a comfortable retirement.
If you can afford to, you should think about saving more. The more you pay in, the more tax relief you’ll get from the government and the more you could get back when you retire. You can always reduce your pension contributions back to the minimum amounts if things change and you don’t have enough spare cash.
If you want to increase your pension contributions, please talk to your employer first to see if they can set up the extra payments for you. If your employer can’t do this, then you can:
You’ll receive an annual statement via your Online Account showing the value that you hold in The People’s Pension.
This will help you keep track of how your investments are doing and give you an idea how much you might have when you retire.