Answers · UK 2025/26
What is the pension annual allowance for 2026/27?
The pension annual allowance for 2026/27 is £60,000 (or 100% of earnings if lower). This covers all contributions to defined contribution pensions and any increases in defined benefit pensions. You can carry forward unused allowance from the previous 3 tax years.
Full answer
The pension annual allowance for 2026/27 is £60,000 (or 100% of your UK earnings, whichever is lower). This is the maximum total pension input — including your own contributions, employer contributions, and any other contributions — that can receive tax relief in a single tax year across all registered pension schemes you belong to. For defined benefit (final salary) pensions, the annual allowance is measured by the increase in the capitalised value of your accrued benefits (multiplied by 16). If you exceed the annual allowance, the excess is subject to the Annual Allowance Charge, which effectively claws back the tax relief at your marginal rate. Carry forward allows you to use unused annual allowance from the previous 3 tax years, provided you were a member of a registered pension scheme in those years.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.