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Are you making the most of pensions?

Published: 9 January 2017

From tax relief on your payments, to the employer contributions that members of workplace schemes can benefit from, there are some very compelling reasons to take advantage of pensions.

For every £80 that you pay in (subject to your annual allowance), your pension scheme can claim another £20 in tax relief from the government, so a £100 contribution costs you just £80. And, if you’re a higher or additional rate tax payer, you can claim extra tax relief through your self-assessment return.


The annual (£40,000) and lifetime (£1 million) allowances for most people on the level of payments they can make, and still get tax relief, remain relatively generous.

Pensions tax relief is a generous government tax break, and it can make a real difference to the size of your eventual pension pot. Pension contributions can also potentially be used to help make savings in other areas of your financial life.

To find out more, download our free, comprehensive guide to Getting the most from your pension savings now.

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Important information

These articles are designed to help investors make their own investment decisions. They do not constitute a personal recommendation to invest. If you have any doubts as to their suitability you should seek expert advice.

Please remember the value of your investments and any income from them can go down as well as up. The value of your fund may be less than you pay in.

Before you choose a SIPP, make sure you understand its aims and risks. Alliance Trust Savings does not give advice. A SIPP requires active management and investment expertise. You should make sure you review your investments regularly.

Tax relief each year is limited to 100% of your earnings or your annual allowance, whichever is lower. Tax relief is only available on contributions to age 75. Also, Alliance Trust Savings does not accept pension contributions from age 75.

Law and tax rules may change in the future without notice. The information here is our understanding in January 2017. This information takes no account of your personal circumstances which may have an impact on tax treatment.

Past performance is not a guide to future performance.

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Alliance Trust Savings Limited is a subsidiary of Alliance Trust PLC and is registered in Scotland No. SC 98767, registered office, PO Box 164, 8 West Marketgait, Dundee DD1 9YP; is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, firm reference number 116115. Alliance Trust Savings gives no financial or investment advice.