Answers · UK 2025/26

How much can I still pay into a pension after I have started taking it?

Just £10,000 a year, gross, once you trigger the Money Purchase Annual Allowance (MPAA). Taking taxable income from flexi-access drawdown or a UFPLS triggers it. Taking only your 25% tax-free cash, or buying a lifetime annuity, usually does not, so you keep the full £60,000 allowance.

Last updated: 10 June 2026Last reviewed: 10 June 2026How we verify

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The Money Purchase Annual Allowance (MPAA) caps how much you can keep contributing to defined contribution pensions with tax relief once you have flexibly accessed a pot. For 2026/27 the MPAA is £10,000 gross a year, down from the standard £60,000 annual allowance, and you cannot use carry-forward against it. It is triggered when you take taxable income via flexi-access drawdown, take an Uncrystallised Funds Pension Lump Sum (UFPLS), or exceed limits on certain older capped drawdown plans. It is not triggered by taking only your 25% tax-free cash, buying a lifetime annuity, or cashing a small pot under £10,000 using the small-pots rule. Worked example: you are 58, still working on £45,000, and take £6,000 of taxable drawdown income to clear a debt. This triggers the MPAA. From then on, you and your employer combined can only pay £10,000 gross into money-purchase pensions each year with relief. If your workplace contributions were already £9,000, you have just £1,000 of headroom, and any excess faces an annual allowance charge at your marginal rate. So if you plan to keep saving heavily, think carefully before taking taxable pension income early. Use the pension calculator to check your contribution headroom. For the rules see gov.uk at https://www.gov.uk/tax-on-your-private-pension/annual-allowance.