What's your annual income?
Drag the slider to see how tax, allowances and pension strategy change at your income level.
The pension opportunity
How a pension contribution can restore your tax-free allowance and save thousands.
Your income rises above £100k
HMRC starts withdrawing your personal allowance — £1 lost for every £2 earned above £100,000.
Effective tax rate hits 60%
Between £100k and £125,140 you pay 40% income tax PLUS lose allowance worth 20% on every extra pound.
You make a pension contribution
This reduces your "adjusted net income" — the number HMRC uses to calculate your allowance.
Allowance restored, tax saved
Your full £12,570 personal allowance comes back. You keep 60p for every £1 contributed — effectively costing you just 40p per pound.
With vs without pension contributions
Based on your selected income of £80,000.
See where today's decisions could take you.
Every contribution, tax saving and investment decision can shape your long-term financial future. Visualise your progress over time.
Start optimising your pension
Begin salary sacrifice or increase contributions to reduce your tax burden.
Cumulative tax saved
Two years of optimised pension contributions.
Projected pension pot
Assuming 5% annual growth after charges.
Eligible to access pension
25% tax-free lump sum available. Remainder taxed as income.
Estimated retirement income
Based on 4% sustainable withdrawal rate from projected pot.
Personalised recommendations based on your results.
We've identified the next actions that could have the greatest impact on your long-term financial future.
Increase your pension contribution
Consider contributing enough to restore your personal allowance and reduce your effective tax rate.
Use more of your ISA allowance
You may benefit from investing up to £20,000 tax-free alongside your pension strategy.
Review your workplace pension
See whether your current investments align with your values using our independent research.
Build your emergency fund
We recommend building 3-6 months of expenses before increasing investment contributions.
What your numbers mean
Based on your income and tax position, here's what we've identified about your financial situation.
Above-average pension contribution
Your pension contribution is above average for your income level and provides meaningful tax efficiency. This is one of your strongest financial decisions.
Unused ISA allowance
You still have unused ISA allowance that could increase your tax-free investment potential. Consider directing additional savings here.
Early retirement requires additional planning
Retiring before 57 may require additional savings outside your pension. Consider ISA investments for flexible earlier access.
Small increase, large impact
Increasing contributions by £100 per month could materially improve your projected retirement income. The earlier you start, the more compound growth works in your favour.
Compound growth accelerates after year 15
The most significant growth in your portfolio occurs in later years as compound returns build on themselves. Consistency matters more than timing.
Consider salary sacrifice
You may benefit from salary sacrifice if your employer offers it. This saves National Insurance on top of income tax relief.
Understanding the details
Expand each topic to learn how it applies to your situation.
The 60% Tax Trap (£100k–£125,140)
If you earn between £100,000 and £125,140, you lose £1 of personal allowance for every £2 earned above £100k. This creates an effective marginal tax rate of 60% on income in this band.
Your £12,570 personal allowance is gradually withdrawn. On the £25,140 between £100k and £125,140, you pay 40% income tax PLUS lose allowance worth 20% — totalling 60% effective tax on every extra pound.
Child Benefit High Income Charge
If you or your partner earns over £60,000, you begin to lose Child Benefit through the High Income Child Benefit Charge. At £80,000, you lose it entirely.
Example: Earn £75,000 with 2 children (£2,212/year benefit). Contribute £15,000 to pension → income drops to £60,000 → retain full benefit + get 40% tax relief. Total benefit: £8,212.
Salary Sacrifice
Salary sacrifice means agreeing to a lower salary in exchange for your employer making pension contributions. The key benefit: you save National Insurance (8%) as well as income tax (40%).
Example: Sacrifice £5,000 from an £80,000 salary → save £400 NI + £2,000 tax = £2,400 saved. Your employer may also share their 13.8% NI saving.
Pension vs ISA Strategy
Pension: 40% tax relief on contributions, tax-free growth, 25% tax-free lump sum, but locked until age 57. Annual limit £60,000.
ISA: No tax relief on contributions, but all growth and withdrawals are completely tax-free with flexible access. Annual limit £20,000.
Pension Annual & Tapered Allowance
Standard annual allowance: £60,000. But if "threshold income" exceeds £200,000 and "adjusted income" exceeds £260,000, the allowance tapers. Minimum tapered allowance: £10,000.
Carry forward: unused allowance from the previous 3 tax years can be used if you were a member of a pension scheme in those years.
Zakat on Investments & Pensions
Cash savings: 2.5% of balance above nisab. Stocks & Shares ISA: 2.5% of market value. Pension (before retirement): scholars differ — many hold pensions not zakatable until accessible (age 57).
Set a fixed Zakat anniversary date. Total zakatable assets, subtract debts, pay 2.5% on net amount above nisab (~£4,500 in 2025/26).
Next steps
Disclaimer: This tool is for general information only. Tax rules change frequently. Zakat rulings vary between scholars. Always consult a qualified financial adviser for tax matters and a knowledgeable scholar for Zakat questions.