Personal pension

The contribution limits and tax advantages of personal pensions are identical to those of other types of personal pension, such as stakeholder, group personal and self invested personal pensions (SIPPs). You can invest up to 100% of your earned income, subject to an annual tax free contribution limit of £245,000, in the tax year 2009/10 (rising by £10,000 to reach £255,000 by tax year 2010/11). It is possible to pay into a personal pension – as well as other pension schemes – including company pension schemes, provided that contributions are not more than 100% of your earnings in total.