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How do employees get tax relief on pensions?

Shared from Tax Insider: How do employees get tax relief on pensions?
By Meg Saksida, October 2021

Meg Saksida explains the mechanics and benefits of contributing to an occupational pension scheme.

Pension savings

Most individuals in the UK will be eligible for the state pension. This is a monthly amount payable to the individual once they reach pensionable age (currently 66 in the UK), at a level depending on the level of the National Insurance payments that the individual has paid over their working life. At under £10,000 a year (£179.60 a week for 2021-22), taxpayers often wish to top up the state pension and to do this with either or both a private personal pension, or a pension connected to their employment, called an occupational pension scheme. 

Since 2012 a program of ‘auto enrolment’ was rolled out by the government, such that by now, all employers must offer an occupational pension scheme to their employees and contribute a minimum amount to it.

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