Pension Contribution Limits for 2026/27
Understanding how much you can contribute to your pension is essential for maximising tax relief and building your retirement savings. For the 2026/27 tax year, there are several limits that determine how much you can pay into your pension.
Key Contribution Limits at a Glance
| Limit | Amount | Who It Affects |
|---|---|---|
| Annual Allowance | £60,000 | Everyone |
| 100% of Earnings | Varies | Tax relief limited to earnings |
| Non-earner limit | £3,600 gross | Those with no or low earnings |
| Tapered Annual Allowance (min) | £10,000 | Adjusted income over £260,000 |
| Money Purchase Annual Allowance | £10,000 | Those who have flexibly accessed pension |
| Carry Forward (max 3 years) | Up to £180,000 extra | Members with unused prior allowances |
The £60,000 Annual Allowance
The most important limit is the £60,000 Annual Allowance. This covers all pension contributions in the tax year — your own, your employer's, and any third-party contributions. You receive tax relief at your marginal rate on contributions up to this limit (or 100% of your earnings, whichever is lower).
Employer Contributions
There is no separate cap on employer contributions — they simply count towards your £60,000 Annual Allowance. Following the Autumn Budget increase in employer National Insurance to 15%, salary sacrifice has become more attractive for both employers and employees.
Carry Forward Rules
If you have unused Annual Allowance from the previous three years, you can carry it forward to make larger contributions. For 2026/27:
- 2023/24 unused allowance: Last year available for carry forward
- 2024/25 unused allowance: Available for carry forward
- 2025/26 unused allowance: Available for carry forward
You must use the current year's £60,000 first, then the earliest available year. You need to have been a member of a registered pension scheme in each year you carry forward from, and tax relief is limited to 100% of your earnings in the year of contribution.
Non-Earners and Low Earners
Even if you have no earnings, you can contribute up to £3,600 gross (£2,880 net) to a pension and receive basic rate tax relief. This is particularly useful for:
- Non-working spouses or partners
- Parents taking career breaks
- Children (pensions can be opened for children)
Money Purchase Annual Allowance (MPAA)
If you have flexibly accessed your pension benefits (beyond the 25% tax-free lump sum), your Annual Allowance for money purchase pensions drops to £10,000. You cannot use carry forward for the MPAA. This is a permanent restriction once triggered.
Strategies to Maximise Contributions
- Use salary sacrifice: Save both income tax and National Insurance
- Maximise employer matching: Contribute enough to get the full employer match
- Use carry forward: Make larger contributions in years where you have high income
- Contribute before year end: Ensure contributions are made before 5 April 2027
- Consider a spouse's pension: If your partner has unused allowance or low earnings, contribute to their pension
- Avoid triggering MPAA: If you plan to make future contributions, be careful about flexibly accessing pension benefits
Contribution Deadlines
Pension contributions must be made within the tax year to use that year's Annual Allowance. The deadline for 2026/27 contributions is 5 April 2027. For self-assessment claims of higher and additional rate relief on 2025/26 contributions, the deadline is 31 January 2027.