Pensions and retirement

The government wants people to save for their retirement. But it realises that people might not want to commit to saving in a pension that can't be touched for some years. So to encourage people to save, it gives tax relief on your pension contributions.

As an example, if you invest £80 a month, the taxman currently adds £20 - making £100 in total. This happens automatically.

If you're a higher or additional rate taxpayer, you may qualify for extra tax relief. If this is the case we'll claim the first 20% tax relief for you and add it to your plan. You'll need to claim the additional tax relief through your tax return.

Tax relief may change. Its value depends on your individual circumstances. The information provided here is based on our understanding of current law and HM Revenue & Customs practice.