🇬🇧 United Kingdom / Pension Rates

UK Pension Rates & Limits 2026

Official rates sourced from HMRC, Department for Work and Pensions, The Pensions Regulator 2024/25.

Last updated: 2026-06-27

Current Rates

Parameter	Value
Annual Allowance	60,000
Money Purchase Annual Allowance	10,000
Lifetime Allowance Abolished	Yes
State Pension New Full Weekly	221.2
State Pension Qualifying Years Full	35
State Pension Qualifying Years Min	10
Minimum Employer Contribution Auto Enrolment	3
Minimum Employee Contribution Auto Enrolment	5
Total Minimum Auto Enrolment	8

Rules & Limits

Parameter	Value
Auto Enrolment Earnings Threshold Lower	6,240
Auto Enrolment Earnings Threshold Upper	50,270
Pension Access Age Current	55
Pension Access Age From 2028	57
Tax Free Cash Percent	25
Tax Free Cash Lifetime Max	268,275
Carry Forward Years	3
Pension Input Period End	5 April

Notes

›The annual allowance (£60,000 from April 2023) is the total pension input from all sources (employee + employer) before the excess is taxed at the marginal rate. High earners have a tapered annual allowance: reduces by £1 for every £2 of adjusted income above £260,000, to a minimum of £10,000.
›Employers must automatically enrol eligible employees (aged 22–state pension age, earning above £10,000/year) into a qualifying workplace pension. The 8% total contribution is on qualifying earnings (£6,240–£50,270), not total salary.
›Full new State Pension is £221.20/week (2024/25). You need 35 qualifying National Insurance years for the full amount. Between 10 and 35 years gives a proportional amount.
›Self-Invested Personal Pensions (SIPPs) allow a wide range of investments. Tax relief is claimed at 20% basic rate for all; higher/additional rate taxpayers claim extra via Self Assessment.
›The Lifetime Allowance was abolished from April 2024. However, tax-free cash (pension commencement lump sum) is still limited to 25% of the fund up to £268,275 (the former 25% of £1,073,100 LTA).

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Current Rates

Parameter	Value
Annual Allowance	60,000
Money Purchase Annual Allowance	10,000
Lifetime Allowance Abolished	Yes
State Pension New Full Weekly	221.2
State Pension Qualifying Years Full	35
State Pension Qualifying Years Min	10
Minimum Employer Contribution Auto Enrolment	3
Minimum Employee Contribution Auto Enrolment	5
Total Minimum Auto Enrolment	8

Parameter

Value

Auto Enrolment Earnings Threshold Lower

6,240

Auto Enrolment Earnings Threshold Upper

50,270

Pension Access Age Current

Pension Access Age From 2028

Tax Free Cash Percent

Tax Free Cash Lifetime Max

268,275

Carry Forward Years

Pension Input Period End

5 April

Notes

›The annual allowance (£60,000 from April 2023) is the total pension input from all sources (employee + employer) before the excess is taxed at the marginal rate. High earners have a tapered annual allowance: reduces by £1 for every £2 of adjusted income above £260,000, to a minimum of £10,000.

›Employers must automatically enrol eligible employees (aged 22–state pension age, earning above £10,000/year) into a qualifying workplace pension. The 8% total contribution is on qualifying earnings (£6,240–£50,270), not total salary.

›Full new State Pension is £221.20/week (2024/25). You need 35 qualifying National Insurance years for the full amount. Between 10 and 35 years gives a proportional amount.

›Self-Invested Personal Pensions (SIPPs) allow a wide range of investments. Tax relief is claimed at 20% basic rate for all; higher/additional rate taxpayers claim extra via Self Assessment.

›The Lifetime Allowance was abolished from April 2024. However, tax-free cash (pension commencement lump sum) is still limited to 25% of the fund up to £268,275 (the former 25% of £1,073,100 LTA).