How to pay a lump sum into a pension

When can I put a lump sum into my pension?

‍

‍

Pension lump sum rules

You can pay money into your pension at any point in your life, and there’s no upper limit on how much you can pay in. In fact, the sooner you can invest your lump sum the more time it will have to grow, potentially giving you more income in retirement.

That tax payable on a pension lump sum is the same as a regular pension contribution. You’ll receive pension tax relief on pension contributions up to 10^{_personal_allowance_rate} of your salary, up to an annual threshold of ^{_annual_allowance}. If you go over this amount you won’t receive tax relief on those contributions and will be charged tax at the highest rate you pay.

For this reason it’s a good idea to keep track of your pension contribution levels throughout the year. If you’ve saved less than the annual threshold, the end of the financial year is a good time to make a lump sum pension contribution. You’ll maximise your tax relief for that year before your balance resets in April.

‍

{{main-cta}}

‍

If you meet certain criteria you may be allowed to carry forward three years of unused allowances from qualifying pensions. Where applicable, you could benefit from tax relief on further contributions of up to ^{_max_carry_forward} on top of your current year.

Your pension contributions attract a ^{_corporation_tax} tax top up from the government. Higher and additional rate taxpayers can claim a further ^{_corporation_tax} and 31% respectively through their Self-Assessment tax returns. If you’re a basic rate taxpayer and have ^{_adjusted_income_on_annual_allowance} to invest in your pension as a lump sum, the government will add ^{_basic_rate_personal_savings_allowance} in tax relief, provided you’re below the threshold.

Reach your retirement goals, faster

If you come into extra money, one of the best places to invest a lump sum is into a pension. Whatever your plans for retirement, paying a lump sum into your pension is a great way to help you get there.

When you choose a pension plan from PensionBee we’ll make saving as simple as possible.

• If you’re a basic rate tax payer, we’ll add your ^{_corporation_tax} tax top up automatically when you make personal contributions to your PensionBee pension.
• If you’re a higher-rate tax payer, you’ll need to claim any additional tax relief yourself through your self-assessment tax return.

You can also view your balance and make lump sum payments through the BeeHive.

Start saving with PensionBee today.

‍

Risk warning

As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. This information should not be regarded as financial advice.

Last edited: 06-04-2025