Useful next calculations
Rates and sources, 2026/27
2026/27 pension annual-allowance planning thresholds. This does not calculate threshold income, adjusted income, carry-forward eligibility or any annual-allowance charge.
| Band or figure | Rate |
|---|---|
| Standard annual allowance | £60,000 |
| Threshold-income test | over £200,000 |
| Adjusted-income taper starts | over £260,000 |
| Minimum / MPAA used | £10,000 |
Source: GOV.UK — pension annual allowance. Source checked for 2026/27.
When to use this calculator
- Before choosing between saving, investing or changing a contribution.
- When you want to compare cautious, base and optimistic return assumptions.
- When you need a projection before making a longer-term decision.
- When you want to see whether starting earlier or contributing more changes the outcome more.
A worked example
These are the example figures the calculator opens with.
| Input | Value |
|---|---|
| Planned pension input for the tax year (£) | £20,000 |
| Threshold income (£) | £180,000 |
| Adjusted income (£) | £180,000 |
| Has the Money Purchase Annual Allowance (MPAA) been triggered? | No / not sure |
For those figures the calculator returns:
- Annual allowance used for planning: £60,000.00
- Confirmed carry-forward entered: £0.00
- Planning capacity: £60,000.00
- Remaining capacity: £40,000.00
- Above planning capacity: £0.00
Method & assumptions
This UK-only planning tool applies the published 2026/27 £60,000 annual allowance, stated £200,000 threshold-income and £260,000 adjusted-income taper tests, and the £10,000 floor. It cannot determine threshold income, adjusted income, pension input amount or a tax charge from a payslip alone.
Carry-forward is deliberately entered by you rather than inferred. Scheme membership, unused allowance for the previous three tax years, the MPAA and defined-benefit pension rules can change the outcome. If the result matters for a contribution or a Self Assessment return, check the current HMRC guidance and your scheme information or obtain professional advice.
Official references
Common mistakes
- Assuming a constant return without checking a more conservative growth rate.
- Forgetting ongoing contributions, fees or tax wrappers where relevant.
- Focusing only on the final balance instead of the path required to reach it.
- Ignoring the drag of charges over a long period.
What to do next
- Test a cautious, expected and optimistic growth rate.
- Compare this result with related savings or retirement tools before committing more money.
- Consider charges and any tax wrapper that applies.
- If the projected balance falls short, increase the contribution until the result meets your goal.