Tax relief is one of the best features of using a pension to save for retirement.
When you pay into your pension, some of the money that would have gone to the Government as tax goes instead into your pension pot, which can help reduce the amount of tax you pay and boost your savings.
How does Tax relief on pensions work?
There are two ways you can get tax relief on your pension contributions:
If you’re in a workplace pension scheme, your employer chooses which method you use; if you’re in a personal pension, you always have to use the relief at source method.
The easiest way to check which method your scheme uses is to ask your HR department (or whoever handles payroll for your employer) or, if you’re self-employed, your pension provider.
>> Download our ‘Tax relief on pensions’ Guide
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