Something to keep in mind
As you’re planning for the future, you may be thinking about what you want to do with your pension. As you’re doing this, it’s good to consider the tax implications of how much you’re building – and how much you’re going to be taking out.
You may also want to see whether there’s anything you can start doing to manage your tax liability, particularly if you’re a high earner.
Take a look at the various taxes associated with your pension below and some options we offer which could help you manage them.
For important information on this guidance please see our key terms and important information page.
Upcoming changes to pensions tax
From April 2027, there will be changes to the way that most unused pension funds and death benefits will be treated for Inheritance Tax purposes.
From April 2029, only the first £2,000 of pension contributions paid through salary sacrifice each year will be exempt from National Insurance contributions.
To find out whether your employer offers salary sacrifice or whether you use it for your pension contributions, please speak to the pension team at your workplace.
If you think you might be impacted by these changes, we recommend that you seek independent financial advice. More information is available from the guidance and financial advice page.