Prosperity IM

The years you earn the most could be the years HMRC lets you save the least into a pension. ➡️

If you are a high earner in your 30s assuming you will simply max out your pension later, this is the part no one tells you.

Most people know the annual allowance is £60,000. Far fewer know it tapers. Once your adjusted income passes £260,000, that allowance shrinks by £1 for every £2 above it, falling as low as £10,000 once you reach £360,000. So the higher you climb, the smaller the door becomes.

🎯 Why it catches high earners
The peak earning years are exactly when the allowance is most restricted. People plan to catch up later, then discover the runway was shortest at the top.
🧩 The lever most people miss
Carry forward lets you use unused allowance from the previous three tax years, but only if the pension is already in place and your earnings support it. Set up late and that window is already closing behind you.
🛠️ Why it needs planning, not guessing
Threshold income, adjusted income, employer contributions and bonuses all interact. One large bonus can quietly tip you into the taper without warning.

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At Prosperity, we believe financial freedom looks different for everyone. Our job is to help you find yours.

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