UK 2028 Pension Annual Allowance

UK 2028 pension AA: £60,000 standard. Tapers £1 per £2 above £260k adjusted income, floor £10,000. Lifetime Allowance abolished April 2024 — replaced by LSA + LSDBA.

2028 AA
Excess
Max Charge
Adjusted income
Your 2028 AA
Pension contributions
Excess (charge)
Max AA charge (45%)
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The UK 2028 pension Annual Allowance is £60,000 standard. Tapers for high earners: threshold income above £200k + adjusted income above £260k = £1 AA loss per £2 over £260k, floor £10,000. The Lifetime Allowance was abolished April 2024 — replaced by Lump Sum Allowance (£268,275) and Lump Sum Death Benefits Allowance (£1,073,100).

Taper Mechanics

Both conditions must apply: threshold income (broadly: total income - personal pension contributions) > £200k AND adjusted income (threshold income + employer pension contributions) > £260k. If both yes, AA tapers £1 per £2 above £260k adjusted income. Floor £10,000. Hits high-earning professionals hardest.

Carry-Forward Unused AA

Can use unused AA from prior 3 tax years (in chronological order). Must have been a UK pension scheme member in those years. Powerful for variable-income earners — accumulate AA in lean years, use in bonus/exit years up to £210k over 4 years.

LTA Abolition + LSA

Lifetime Allowance £1,073,100 abolished April 2024. Replaced by: (1) Lump Sum Allowance £268,275 = max tax-free cash; (2) Lump Sum Death Benefits Allowance £1,073,100 = max tax-free death benefits to beneficiaries. Other pension payments now tax-free until LSA reached.

Last updated May 2026. Sources: HMRC AA.