Contribution Limits

There are some limits on how much you can contribute to your pension. Here's what you need to know.

The minimum amount you can contribute in a single transaction is £1. This applies to both one-off contributions and saving rules.

The maximum you can contribute to your pension each tax year with tax relief is called your annual allowance. For most people, this is:

This limit applies to all your pension contributions combined – including contributions to Chest, any workplace pensions, and any other personal pensions. It also includes employer contributions and tax relief.

Chest doesn't impose any daily or weekly limits on contributions. You can contribute as often as you like, as long as you stay within your annual allowance.

If you're not earning (or earning very little), you can still contribute up to £2,880 per year. The government will add 20% tax relief, bringing your total contribution to £3,600.

If you contribute more than your annual allowance across all your pensions, you may have to pay an Annual Allowance Charge on the excess. This is calculated at your marginal rate of income tax and must be reported on your self-assessment tax return. See our article on annual allowance for more information.

If you haven't used your full annual allowance in previous years, you may be able to carry forward unused allowance from the last three tax years. This allows you to make larger contributions in the current year. See our article on carry forward for details.

If you have questions about contribution limits, contact us at hello@joinchest.com.