Key pension facts

Threshold and adjusted income

Tax

Threshold and adjusted income are terms relevant for the tapered annual allowance.

In order for the tapered annual allowance to kick in (whereby annual allowance is reduced by £1 for every £2 above the threshold down to a minimum of £4,000), both threshold and adjusted income need to be above £200,000 and £240,000, respectively, as of 2020/21. Threshold income is generally just your regular earnings whereas adjusted income includes your pension contributions for the year.

See also our Tax Benefits of a Pension blog post.

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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