I am currently in Pension drawdown. Can you still contribute to this pension even though you are no longer employed?

16 March 2023

Question by Mark

I am currently in Pension drawdown. Can you still contribute £4k to this pension even though you are no longer employed e.g. from other money savings I have or gifted to me?


Answered by Chris Broome

Hi Mark,

Your pension annual allowance is defined as 100% of your UK relevant earnings, capped at £40,000 per annum.

UK relevant earning are defined as:

- employment income, such as: pay, wages, bonus, overtime, or commission and other P11D benefits.
- income from self-employment or a partnership
- redundancy payment above the £30,000 tax exempt threshold
- income from a UK and/or EEA furnished holiday lettings business
- patent income, where the individual alone or jointly devised the invention

If you have no UK relevant earnings, then you are capped at £3,600 gross per annum, or a net contribution of £2,880 (which is what you'd contribute), with your Personal Pension scheme reclaiming the 20% tax relief from HRMC.

I hope this answer helps.

If you have any more questions please let me know.

Kind regards

Chris Broome.

Answered by

Chris Broome

Chartered Financial Planner

My name is Chris Broome and I own a wonderful fixed-fee and independent financial planning practice called Longhurst.