How much should I pay into my pension?
Important information - please keep in mind that the value of investments can go down as well as up, so you may get back less than you invest. Tax treatment depends on individual circumstances and all tax rules may change in the future. You cannot normally access money in a SIPP until age 55 (57 from 2028). This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.
Retirement calculator
When you’re deciding how much money to invest into your pension, picturing how you’d like your future to look is a good place to start. Our calculator can help give you an idea of how much it’ll take for you to live the retirement you’ve always wanted.
Are you on track?
A Self-Invested Personal Pension (SIPP) is a pension you manage yourself. You decide what it's invested in, how much is paid into it and when.
FAQs
In the current tax year, the annual allowance is capped at £60,000 and applies across all your pension savings (excluding State Benefits), not per scheme. If the contributions to your pensions exceed the annual allowance, a tax charge ('the annual allowance charge') may become payable. This effectively claws back any excess tax relief given at source. If your taxable earnings in the year are below the annual allowance then tax relief on pension contributions from all sources is limited to 100% of your earnings (or to £3,600 if you have no earnings).
All employers must offer a workplace pension scheme by law and make contributions - as long as you're eligible for automatic enrolment. However, you do not have to pay into a pension if you don't want to and you can decide to opt out. You should carefully research and consider all your options before making this decision.
As you get tax relief on your pension, you might want to think about paying extra into your pension each month. Even 1% can make a big difference over time as the earlier you invest your money, the more time it has to grow, although this is not guaranteed.
In theory, you can put as much as you like into your pension. However, there are limits as to how much you can pay in while still getting full tax relief (a government tax-break intended to encourage you to save for your retirement). Pension allowances are a complicated area, but you can find out what the limits are and how to make the most of them here.
Make your money work harder
It's never too early, or too late, to put money away for retirement. But you may want to think about how you look after your pension as your life changes.
