Scottish Widows | Retirement | Review your drawdown

Add more money to your pension

What to think about

How much you can pay in

It can still be a good idea to put money into your pension plan because it gets added tax relief when it goes in. Plus, you can also take out 25% of what you put in as a tax free lump sum.

How much you can put in and gain this tax-efficiency depends on whether or not you have already taken any taxable income or lump sums from any money purchase pension plan .

  • If you’ve only taken your tax free lump sum, but no taxable income or lump sums:

    You can pay up to £40,000 in your pension, each tax year and get tax relief. If you’re a higher or additional rate tax-payer you can claim the tax relief on your tax return.

  • If you’ve taken your tax-free lump sum and a taxable income or lump sums:

    You can pay up to £4,000 in your pension each tax year and get tax relief. If you overpay, this will be taxed as income for the year you pay this in.

What you can do

How to pay money in

Call 0345 716 6733. We'll go through some of your options, like which fund you want to choose, then send you a quote and a form which you can post or email back to us.

You can make single payments by cheque or BACS, or regular payments by Direct Debit.

Add another pension plan

You can add another pension to your Retirement Account, as long as you aren’t already getting a fixed regular guaranteed income (an annuity), or it’s a type of pension that’s based on your salary.

How you do this depends on whether you’ve taken the tax-free lump sum from the pension you wish to transfer.

  • Transferring plans where you haven’t taken a tax free lump sum:
    You can do this online
  • Transferring plans where you’ve taken the tax free lump sum:
    You can only do this with the help of a financial adviser.

Pensions are a long-term investment. The retirement benefits you receive from your pension plan will depend on a number of factors including the value of your plan when you decide to take your benefits which isn’t guaranteed, and can go down as well as up. The value of your plan could fall below the amount(s) paid in.