Can I put money into a SIPP when I’m 51 and have the benefit of the 20% added by the Government?

27 March 2023

Question by Lisa

Can I put money into a SIPP when I’m 51 - a lump sum and then monthly payments - and then withdraw at 55? And have the benefit of the 20% added by the Government?


Answered by

Hi Lisa,

Yes you can still contribute at 51 into a pension. You can claim tax relief (the 20% added by the government), up to 100% of your earnings, or £3,600, whichever is higher each tax year. For example, if your salary was £20,000, you'd be able to put a lump sum of £16,000 into a pension and claim £4,000 tax relief.

There are limits to how much you can contribute into a pension too called the annual allowance. This is currently £40,000, and increasing to £60,000 from 6th April 2023. There can be reductions to this allowance too for high earners and those who have already taken an income from their pension.

When you reach 55 (this is increasing to 57 in 2028), you can take 25% as a tax free lump sum and the remaining money will be subject to income tax, like you have earned it.

Hope this helps.

Best Wishes

Chloe