Pension Annual Allowance Calculator 2026/27

Check whether your pension contributions exceed the £60,000 annual allowance and calculate how much unused allowance you can carry forward from previous years.

Your Effective Annual Allowance
£60,000
Standard Annual Allowance 2026/27
Total Contributions
£0
Unused This Year
£60,000
Carry Forward Pool
£0
Total Headroom
£60,000
Chargeable Excess
£0
Estimated AA Charge
£0
Enter your contributions to see your annual allowance position.
Allowance vs Contributions
Current year contributions 0%
£0£60,000
Year Allowance Contributions Unused Available
Contributions and Headroom
How the Annual Allowance Works

The Annual Allowance (AA) is the maximum you (and your employer) can contribute to registered pension schemes in a tax year before a tax charge applies. For 2026/27 it is £60,000.

The Money Purchase Annual Allowance (MPAA) of £10,000 applies once you flexibly access a DC pension. It limits future DC contributions to £10,000 per year - carry forward cannot be used to increase this limit for DC schemes.

The Tapered Annual Allowance reduces the £60,000 by £1 for every £2 of adjusted income above £260,000, down to a minimum of £10,000. Both threshold income (above £200,000) and adjusted income conditions must be met.

Carry forward lets you use unused AA from the three previous tax years. You must have been a member of a registered pension scheme in each year. The current year's AA must be fully used before drawing on carry forward, and unused years are used oldest first.

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Pension Annual Allowance FAQs

What triggers the Money Purchase Annual Allowance (MPAA)?
The MPAA of £10,000 is triggered the moment you flexibly access a defined contribution pension · for example by taking income from a flexi-access drawdown fund, taking an uncrystallised funds pension lump sum (UFPLS), or buying a flexible annuity. Taking only your 25% tax-free lump sum does NOT trigger the MPAA. Once triggered it is permanent and limits future DC contributions to £10,000 per year.
How do I use carry forward unused pension allowance?
To use carry forward you must have been a member of a registered pension scheme in the tax year you are carrying forward from · even if you made no contributions. You must use the current year's full annual allowance first, then add unused allowance from the three previous years starting with the oldest. You do not need to notify HMRC in advance but must include any excess on a Self Assessment tax return by 31 January.
Do employer pension contributions count towards the annual allowance?
Yes · the annual allowance covers all contributions to your pension in a tax year: your own contributions, your employer's contributions, and any personal or SIPP contributions. For defined benefit schemes the pension input amount is calculated as 16 times the increase in your annual accrued pension plus any lump sum increase. All inputs count against the same £60,000 limit.
What happens if I exceed the annual allowance?
If your total pension contributions exceed your annual allowance (after using any available carry forward), the excess is subject to the Annual Allowance Charge. The excess is added to your taxable income and charged at your marginal income tax rate - 20%, 40% or 45%. You report and pay this via Self Assessment. In some cases you can ask your pension provider to pay the charge from your pension pot under Scheme Pays rules.
How does the Tapered Annual Allowance work?
The Tapered Annual Allowance applies only if both conditions are met: your adjusted income (gross income plus employer pension contributions) exceeds £260,000 AND your threshold income exceeds £200,000. For every £2 of adjusted income above £260,000 your annual allowance falls by £1, down to a minimum of £10,000. This floor is reached at adjusted income of £360,000. Carry forward can still be used on top of whatever tapered allowance you have.

For informational purposes only · Not financial advice · Tax rates and allowances shown are for 2026/27 · Annual Allowance £60,000 · MPAA £10,000