Do I need to do anything to get my higher-rate tax relief?

On a relief-at-source scheme, yes — the extra relief above the automatic 20% isn't added to your pension or refunded to you unless you actively claim it, usually via a Self Assessment tax return or by asking HMRC to adjust your tax code.

What is the Annual Allowance?

The maximum you and your employer can pay into your pension in a tax year while still getting tax relief — £60,000 for 2026/27, or 100% of your UK earnings if lower. It covers your contributions, your employer's, and any tax relief added, combined.

What is the Money Purchase Annual Allowance (MPAA)?

A much lower annual allowance (£10,000) that applies once you've started flexibly drawing income from a defined-contribution pension — this calculator doesn't model it, so if that applies to you, treat any projection here as unreliable.

What's the minimum pension contribution under UK auto-enrolment?

8% of qualifying earnings (£6,240–£50,270 for 2026/27), split as at least 3% from your employer and the rest from you (including the basic-rate relief add-on).

Does this calculator account for National Insurance?

No — it only models Income Tax relief on pension contributions. Employee National Insurance isn't reduced by relief-at-source pension contributions the way it is under salary sacrifice.

What happens if I exceed the Annual Allowance?

Contributions above the Annual Allowance in a tax year are subject to an Annual Allowance tax charge, effectively clawing back the tax relief you received on the excess. Unused allowance from the previous three tax years can sometimes be carried forward to increase your limit.

Is the growth rate guaranteed?

No — it's an assumption you control. Real pension fund returns vary year to year and can be negative in some years; this is a simplified constant-rate projection, not a guarantee.

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Finance

UK Pension Calculator

Workplace pension growth, tax relief, and the Annual Allowance — for UK savers.

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Last reviewed 2026-08-30

About the UK Pension Calculator

Projects your UK workplace pension pot at retirement from your salary, employee and employer contribution rates, and expected growth — and separates out the tax relief that lands automatically in your pension from the extra relief higher/additional-rate taxpayers must claim back separately.

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How to use it

Enter your annual salary and select your Income Tax band.
Enter your contribution rate and your employer's contribution rate, both as % of salary.
Enter your current pension pot and years until retirement.
Enter your expected annual growth rate.
Read your projected pot, this year's contributions, and the tax relief breakdown in the result panel.

Formula

Employee contribution = salary × your contribution % (quoted gross, as landed in the pension under a relief-at-source scheme). Employer contribution = salary × employer %. Basic-rate relief (20%) is added automatically at source and is already included in the gross employee figure above; higher-rate (40%) and additional-rate (45%) taxpayers must separately claim the difference above 20% back via Self Assessment — that extra relief is paid to you, not into your pension. True net cost from your payslip = employee contribution × (1 − your tax band rate). Projected pot = current pot × (1 + growth)^years + annual total contribution × [((1 + growth)^years − 1) ÷ growth].

Worked example

A £42,000 salary, contributing 5% (employee) with a 3% employer match, starting from a £15,000 pot, over 25 years at 5% annual growth: projects to roughly a £211,000 pension pot, with £420/year of basic-rate relief already included in the gross contribution figure.

2026/27 UK pension tax relief by band

2026/27 UK pension tax relief by band
Tax band	Relief rate	How it's claimed
Basic rate	20%	Automatic — added at source by relief-at-source schemes
Higher rate	40%	Extra 20% claimed via Self Assessment or a tax code adjustment
Additional rate	45%	Extra 25% claimed via Self Assessment or a tax code adjustment

Interpreting your result

Uses the 2026/27 UK pension Annual Allowance (£60,000) and standard Income Tax bands. Assumes a relief-at-source workplace scheme (the common default, e.g. NEST) where your contribution is quoted gross and basic-rate relief is added automatically — some employers instead use a 'net pay' arrangement, where all relief (including higher/additional rate) is automatic regardless of band, with no separate claim needed. Doesn't model the Tapered Annual Allowance, the Money Purchase Annual Allowance (£10,000), National Insurance, or salary sacrifice arrangements. Not financial or tax advice.

Recommendations

• If you're a higher or additional-rate taxpayer on a relief-at-source scheme, the extra relief above 20% doesn't appear in your pension automatically — you have to actively claim it via Self Assessment or a tax code adjustment, or you simply lose it.
• Contributing enough to get your employer's full matching contribution is close to a guaranteed return — it's money you don't get unless you contribute at least that much yourself.
• The £60,000 Annual Allowance covers your contributions, your employer's, and any basic-rate relief combined — a large employer match or bonus sacrifice can use it up faster than salary contributions alone.

Frequently asked questions

Relief-at-source: you contribute net of basic-rate tax, and the provider claims the 20% top-up from HMRC and adds it to your pot — higher/additional-rate taxpayers must separately claim their extra relief. Net pay: your contribution comes out of gross salary before any tax is calculated, so you get full relief at your highest rate automatically, with nothing to claim back.