What is the annual allowance?
Annual Allowance Video Transcript (119KB, PDF)
The annual allowance (AA) is the maximum amount of tax-free growth that your pension savings can increase by in a tax year without you having to pay a tax charge. The annual allowance for 2024/25 is £60,000.
If you have been a deferred member for the full tax year and have not contributed to any other pension, then, for that tax year your pension savings will be nil.
If you stopped contributing to the Scheme during the tax year, then NILGOSC will have checked your pension savings when you left your employer or stopped contributing. If your savings were more than the annual allowance, then NILGOSC will have supplied you with a pension savings statement (PSS) stating the amount of pension savings at your date of leaving.
More information on annual allowance is in the Members’ section of this website Annual Allowance – NILGOSC.