Do You Know Your Pension Allowances & What Can Be Carried Forward?


Pension Planning

In simple terms, a pension is a savings mechanism that helps people to save for later life and provide an income in your retirement. At Beesure we assist you in many different areas of pension advice, whether you are looking to set up a pension, review your existing arrangement or consolidate your pensions, we are able to assist you and provide you with the best quality advice to ensure you make the most of your allowances.


Why are allowances important?

In most cases the most that an induvial can pay into their personal pension is £40,000 in one complete tax year (6 April to 5 April), whilst gaining tax relief. The ‘carry forward’ rule allows individuals to take advantage of any unused allowances from the previous three tax years. Therefore, depending on the circumstances of the individual, a pension contribution of up to £160,000 could be made whilst utilising the ‘carry forward’ rule.

However, there are certain rules in place that need to be met in order for the ‘carry forward’ rule to be met.

    1. It is imperative you had a personal pension in each of the tax years that are being utilised
    2. That your earnings for the tax year are equivalent if not greater than the amount you wish to contribute.
    3. It should be noted however, that any contributions made by your employer are not counted towards this.


Unused pension allowances

Utilising unused pension allowances alongside the ‘carry forward’ rule can be very confusing especially when taking into account the tapered annual allowance rule that sees annual pension allowance limits reduced right down to £10,000 for individuals receiving an adjusted income of £150,000 per annum throughout tax years 2017 up to 2020. This rule has been altered for tax year 2021 meaning the annual allowance is reduced once an individuals adjusted income exceeds £240,000 per annum, right down to £4,000 dependent on the individuals level of income.

As you can see it is an extremely complex area which has many variables to consider. As such when making use of pension allowances and the ‘carry forward’ ruling we highly recommend speaking to a professional to ensure the correct level of contribution is applied to avoid any unnecessary tax charges.


Beesure financial planning works closely with its clients to help achieve their retirement goals. Whether it be to save for that once in a lifetime trip around the world or simply planning for their future, we work together to plan for realistic and affordable ways to achieve this. We can help you whether it’s setting up a pension, consolidating existing pension plans, or reviewing your existing pension plan to make sure this is the most suitable product for your circumstances and utilise all available allowances.

We are a team of highly qualified financial planners who will assist you from day one, until your retirement and throughout.


What next?

  • Check if you have an annual allowance tax charge on your pension savings using the calculator 
  • Speak to one of our team to get professional advice and maximise your allowances Contact us 


For financial and insurance advice visit or for more information on pensions & retirement planning click here.

Written by Raffaele Castaldo, IFA at Beesure Ltd

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Beesure Limited is authorised and regulated by the Financial Conduct Authority no. 832417.
Beesure Limited is a company registered in England and Wales. Company number: 10551333.
Registered office address: Ground Floor, Rowan House, Hazell Drive, Newport, NP10 8FY.

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