Tax relief on pension contributions explained - Which? top tips

Find out how the government tops up your pension savings in the form of pension tax relief. When you save into a pension, the government gives you a bonus to reward you for saving for your future retirement in the form of tax relief. When you earn tax relief on pensions, some of your money that you would have paid in tax on your earnings goes into your pension pot rather than to the government. Tax relief is paid on your pension contributions at the highest rate of income tax you pay. - Basic-rate taxpayers get 20% pension tax relief - Higher-rate taxpayers can claim 40% pension tax relief - Additional-rate taxpayers can claim 45% pension tax relief For more expert advice visit: https://ift.tt/2nejrHp. Which?: http://www.which.co.uk Twitter: https://twitter.com/whichuk Facebook: https://ift.tt/1fAOmna