Key pension facts

Tapered annual allowance

Tax

Your pension annual allowance may be reduced if your ‘threshold income’ is above £200,000 and your ‘adjusted income’ is above £240,000 (your threshold income is just your regular income while your adjusted income is your regular income plus your pension contributions), as of 2020/21. Your annual allowance reduces by £1 for every £2 above £240,000 of adjusted income, until your annual allowance reduces to £4,000 which happens if you earn £312,000 or more.

The government is due to review the tapered annual allowance as it is causing some public sector workers to reduce working hours in order to avoid large tax bills.

See also our tax benefits of a pension blog post.

Changes to these amounts were recently announced in the March 2020 Budget. See also our the Spring Budget 2020 & your pension blog post.

We’ll never leave you high and dry

Our customer support team is rated "Excellent" and is always on hand to help you during the setup process and once you have your new pension. There are 3 ways you can contact us:
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Log in to our website and chat to us

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Email us on support@myraindrop.co.uk

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Call us on 02039517253