By PaySlipCheck Editorial
· Reviewed by PaySlipCheck Editorial Standards Team
· 14 June 2026
· 5 min read
In your 60s pension contribution stays high (20%+ where affordable) right up to retirement, but planning shifts: access mechanics + drawdown vs annuity + tax on withdrawal all become more important. Sensible target: max the £60,000 annual allowance if affordable. Any income now that pushes into higher-rate becomes exceptionally sensible to sacrifice — the tax saving arrives immediately + within a few years accessible. UK State Pension age 66+ (rising) shapes the drawdown timeline.
Verified against 4 official sources · Last reviewed 14 June 2026
Sensible target: 20%+ of gross salary (personal + employer combined).
Why this level?
Approaching or in phased retirement. Access is now imminent (55+, rising to 57 in 2028). Fill final years of allowance.
Salary + contribution combinations in your 60s
Typical salary
Employee %
Employer match
Total annual
Effective cost per £1
£30,000
5%
3%
£2,400
72p (basic rate)
£45,000
8%
4%
£5,400
72p
£60,000
10%
5%
£9,000
58p (higher rate)
£80,000
12%
5%
£13,600
58p
Compounding in your 60s
Starting a £4,000/year contribution now (at 5-7% average return) is worth roughly:
- £40,000 by 65
Should you sacrifice or contribute normally?
Salary sacrifice is almost always better if your employer offers it, particularly:
- Save both Income Tax + NI, and if you're close to accessing pension the cost is even lower
Common mistakes in your 60s
Withdrawing too early — every £1 left compounds for a few more years
In short
In your 60s the UK pension contribution target is 20%+. Start below? Increase now. Stop below auto-enrolment? Missing free employer money. Above £100k? Use pension sacrifice to sidestep the personal allowance taper.
Frequently asked questions
Is 20%+ sustainable at 62?
Yes if you're still working. Contributions still tax-efficient; withdrawal shortly after can be tax-efficient if managed.
Should I max out my final years?
Almost always. Carry-forward + higher-rate relief + short compounding window make late-career pension the most tax-efficient £ in the system.
What about the 25% tax-free lump sum?
25% of your pension pot is available tax-free at 55+ (57+ from 2028). Time this carefully with your overall retirement income plan.
Should I access pension now?
Depends on need. Deferring access allows continued growth + more contribution. Access at earliest opportunity if genuinely needed for income.
How does State Pension fit?
State Pension age is 66-67 for most now. NI credits accumulate up to 35 years for full State Pension entitlement — check your forecast on GOV.UK.
Employer pension match — UK employer pension match ranges from the 3% auto-enrolment minimum to 15%+ at generous employers. Capturing full match should be your first pension priority — it's free money. This guide covers structure + negotiation.
Claim higher-rate pension relief — UK higher-rate pension tax relief above basic rate must be claimed via Self Assessment (relief-at-source schemes) or is captured automatically (net-pay/salary sacrifice). This guide covers the claim process.
NEST pension explained — NEST (National Employment Savings Trust) is the UK's default workplace pension provider set up to support auto-enrolment. This guide covers what it is, how it works, fund choices, fees, and how it compares to People's Pension + Smart Pension.
Salary sacrifice — An arrangement where you give up part of your gross salary in exchange for a non-cash benefit (most commonly pension contributions), reducing your Income Tax and National Insurance.
Personal allowance — The amount you can earn each tax year before paying any UK Income Tax — £12,570 in 2026/27, frozen until April 2031.
Sources
All figures on this page are sourced from official UK government publications.
We don't cite secondary commentary or other calculator sites.
For the calculation methodology behind every figure on this page, see our
methodology. For our review and update process, see our
editorial standards.
Last reviewed: 14 June 2026.
Next review due 14 December 2026.
Disclaimer: This page provides general information based on published HMRC and gov.scot figures. It is not personal tax or financial advice. For your specific situation, please consult a qualified accountant or contact HMRC directly.