Maximising Your Pension Fund

The pensions landscape may seem to be in a constant state of flux, but that doesn’t mean you shouldn’t take steps to make the most of your pension fund.

There are a number of ways to save for your retirement, but pensions remain at the heart of most people’s long-term financial plan. Importantly, they are highly tax efficient, with tax relief on your contributions at your marginal income tax rate.

Tapered annual allowance

The tapered annual allowance can be complex, but our team will help you understand its implications. Tapering happens if your adjusted annual income is more than £260,000. Tapering reduces your annual allowance by £1 for each £2 this is exceeded, to a minimum of £10,000.

Carrying forward unused reliefs

There are circumstances in which it may be possible to contribute more than your current tax year’s annual allowance of £60,000, or your tapered annual allowance, where that applies. If this is the case, you could potentially benefit from tax relief at up to 45% using ‘carry forward’.

This can work for you in cases where you’ve contributed under your annual allowance during the previous three years, and where you were a member of a UK-registered pension scheme during that period.

Lifetime allowance

The recent changes to the Lifetime Allowance mean that seeking financial advice is more important than ever. It is expected that the Lifetime Allowance will be abolished from 6th April 2024 and from April 2023 no Lifetime Allowance tax charge will apply to excess benefits.


The value of an investment with St. James’s Place will be directly linked to the performance of funds you select, and the value can therefore go down as well as up. You may get back less than you initially invested.

The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax reliefs depends on individual circumstances.

Please note that anything over the basic rate of tax must be claimed via the individual’s tax return.