Personal pension contribution of £25,000

The example shows the difference a personal pension contribution of £25,000 can make for a client with income of £125,000.

This image compares the income after tax for someone with taxable income of £125,000 before and after paying a personal pension contribution of £25,000 gross.

Before the contribution:
Taxable income £125,000
Personal allowance zero
Employee National Insurance £6,464.16
Empoyer National Insureance £16,058.78
Tax £42,500
Net pension contribution zero
Income after tax £76,035.84

After the contribution:
Taxable income £125,000
Personal allowance £12,500
Employee National Insurance £6,464.16
Empoyer National Insureance £16,058.78
Tax £32,500
Net pension contribution £20,000
Income after tax £66,035.84

This website is intended for financial advisers only and shouldn't be relied upon by any other person. If you are not an adviser please visit royallondon.com.

The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm is on the Financial Services Register, registration number 117672. It provides life assurance and pensions. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL.