Setting your retirement income target is the start. The income you receive in retirement will depend upon four factors.

  • How much is contributed
  • How well your investments perform
  • When you retire
  • How you take your income 

The good news is if you are part of your workplace pension the likelihood is your employer will be contributing to the pension for you and one factor you can change is how much you contribute. Additional contributions to your pension account will improve your chance of a better retirement income.

You don’t usually have to claim tax relief on pension contributions - you get it automatically if either:

  • You’re in a workplace pension and your employer takes contributions out of your pay before deducting Income Tax (sometimes known as salary sacrifice)
  • Your pension provider claims tax relief for you at a rate of 20% and adds it to your pension savings - this is called ‘relief at source’

You get relief at source in all personal and stakeholder pensions, and some workplace pensions.

Know your limits

You can get tax relief on pension contributions worth up to the lower of 100% of your annual salary or the annual allowance that applies to you. Please refer to the HMRC website - for details of the current allowance applicable. If the contributions to all your pensions, including all personal and company contributions are more than the annual allowance you may have to pay a tax charge on anything over the annual allowance based on the rate of income tax you would have paid had it been received as additional taxable income.


If you are a member of a pension plan administered by BlackRock, then please contact us at

0345 601 7720