How much can I contribute into my Private Pension every year?
Employer gross pension contributions via salary sacrifice count towards your overall annual allowance, which is typically £60,000 pa.
❓What is the Pension Annual Allowance?
The Annual Allowance is the maximum amount you can save into all your pension schemes each tax year without incurring a tax charge. This allowance applies to the total contributions to all your pension arrangements, not just the ones managed through Nasa.
The Annual Allowance includes:
- Contributions you make personally
- Contributions your employer makes (including Nasa Umbrella)
- Contributions made via salary sacrifice arrangements
- Contributions to any other pension schemes you may have outside of your employment with us
For most people, the standard Annual Allowance is £60,000 per tax year, but this can be lower for higher earners or those who have already flexibly accessed their pension benefits so it is important that you check with your pension advisor or financial planner before you decide on the level of contribution via Nasa.
You may also be able to take advantage of 'carry forward' allowances from previous tax years, so be sure to ask your advisor about this too.
😊 Why This Matters to You
Exceeding your Annual Allowance can result in tax charges. By monitoring your pension contributions throughout the tax year, you can make informed decisions about your retirement savings and avoid unexpected tax bills.
One thing to keep in mind is that by law, Nasa must pay you at least a minimum wage salary plus holiday pay per pay period (shown on your payslips as "Basic Rate" and "Holiday Pay"). This means that you cannot sacrifice 100% of the Contract / Assignment Income for private pension.
If you know your expected annual pension allowance, you can let us know here.
Although we will not monitor this for you, we will do our best to notify you if we spot your contributions nearing this limit.
💡 Please only use the email address that is held on file as your primary email - this will be where your payslips are sent. If the email does not match, we will not receive your submission.