Pension Annual Allowance Calculator

Check how personal contributions, employer contributions and a simplified defined benefit input compare with the pension annual allowance and carry forward entered.

What counts towards the pension annual allowance

For defined contribution pensions, contributions made by you and your employer generally count. Defined benefit pensions use a pension input calculation based on the increase in promised benefits rather than the cash contributed.

Tapered annual allowance

The standard annual allowance can be reduced for high earners where both threshold income and adjusted income exceed the relevant limits. This calculator applies a simplified taper using £200,000 threshold income and £260,000 adjusted income tests.

Using carry forward

Eligible unused annual allowance from the previous three tax years may be available. The amount depends on pension input in each year and pension scheme membership, so the figure entered should be checked against pension records.

Worked examples

Employee and employer contributions

An employee contributing £10,000 with an £8,000 employer contribution has pension input of £18,000 before any defined benefit input is considered.

Higher income with tapering

Where both income tests are exceeded, the current-year allowance can reduce below £60,000. Carry forward may still increase the total available amount where the rules are met.

How we calculate this

Personal contributions, employer contributions and 16 times the entered defined benefit increase are combined as a simplified pension input amount.

The standard £60,000 allowance is tapered by £1 for every £2 of adjusted income above £260,000 where both income tests are met, subject to a £10,000 minimum.

The entered carry-forward amount is added to the current-year allowance before pension input is compared with the total available amount.

Official sources

GOV.UK Pension annual allowance

FAQs

What is the standard pension annual allowance?

The standard annual allowance is £60,000 for the current tax year, although a lower limit can apply in some circumstances.

Can unused pension allowance be carried forward?

Potentially. Unused allowance from the previous three tax years may be available if the eligibility rules are met.

Does employer pension funding count?

Yes. Employer contributions to defined contribution pensions generally count towards the annual allowance alongside personal contributions.

Does this calculate an annual allowance tax charge?

No. It estimates whether pension input may exceed the allowance entered. The actual charge depends on your tax position and should be checked carefully.

Related tools

Calculator

Compound Interest Calculator

Estimate how compound interest can grow over time.

Use calculator