Five pension moves to make before the tax year ends — and how they could save you thousands

With the end of the tax year fast approaching on 5 April 2026, millions of savers could miss out on valuable pension tax relief and allowances if they don’t act in time.

The 2025/26 tax year ends on 5 April 2026, and savers are at risk of missing out on valuable pension allowances and tax-saving opportunities. Whether employed or self-employed, those acting before the tax year ends could secure more money invested in their pension, pay less to HMRC and achieve a healthier long-term financial future.

In light of this, Chris Eastwood, CEO of Penfold, shares his thoughts on the pension moves that savers should be making before the tax year ends.

Max out your annual allowance

“Many savers don’t realise they can contribute up to £60,000, or 100% of their earnings if that’s lower, into their pension this tax year and receive tax relief on it,” said Eastwood. “For example, if a basic-rate taxpayer contributes £48,000, HMRC adds £12,000 in tax relief, meaning £60,000 goes straight into their pension.”

Use unused allowances before they expire

“If you didn’t use your full pension allowance in the last three tax years, you may still be able to carry that allowance forward and make a larger contribution this year. But any unused allowance from the 2022/23 tax year will expire after 5 April 2026, so it’s worth checking now if you have extra room to top up your pension.”

Claim the extra tax relief higher earners can get

“Higher earners can often claim extra tax relief on their pension contributions,” Eastwood continued. “While pension providers automatically add 20%, those paying higher or additional-rate tax can usually claim more through their tax return. For example, a £10,000 pension contribution receives £2,500 in automatic tax relief, with higher earners able to claim up to another £2,500 back from HMRC.”

Protect your £12,570 tax-free allowance

“Once income goes above £100,000, people begin to lose their personal tax allowance, which can push the effective tax rate much higher. Pension contributions can help bring taxable income down, potentially restoring some or all of that allowance while boosting retirement savings at the same time.”

Avoid the Child Benefit tax trap

“For families, if one parent earns over £60,000, the High-Income Child Benefit Charge can start reducing the value of Child Benefit,” added Eastwood. “Making additional pension contributions can lower the income used for this calculation, which may help families keep more of their Child Benefit while also growing their pension.”

“Pensions remain one of the most effective ways to reduce your tax bill while investing in your future. But these allowances reset every tax year, so it’s worth reviewing your contributions before the 5^th of April,” said Eastwood.

“Whether you’re topping up your pension, catching up on unused allowances, or simply checking you’re on track, taking a moment now could mean thousands more in your pension and less paid in tax.”

About Penfold

Penfold is a digital workplace pension provider on a mission to help everyone save enough for a comfortable later life. Designed to make pension saving effortless, Penfold’s platform combines cutting-edge technology with award-winning customer service to give savers greater control, clarity, and confidence over their retirement planning. Thousands of businesses of all sizes trust Penfold to simplify employee auto-enrolment pension management, while individuals benefit from an easy-to-use app and transparent investing.

Founded in 2018, Penfold is challenging the status quo of the pensions industry with a modern, user-friendly alternative to traditional providers. Penfold was named in The Telegraph’s UK’s Best Pension Provider 2025 list, holds a 5-star Defaqto rating, and has an ‘Excellent’ rating (4.7 stars) on Trustpilot for its outstanding customer experience.

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