Pension Planning at £100k: Escaping the Tax Trap
£100k is the most tax-hostile point on the UK income scale. Just above it, your personal allowance starts tapering away, so each extra pound in that band is effectively taxed at around 60%, a marginal rate no headline table admits to. The flip side: nowhere do pension contributions achieve more per pound than here.
How Contributions Rebuild Your Personal Allowance
Because the taper is driven by adjusted net income, pension contributions that pull you back toward the £100k line restore allowance that had been stripped away. Relief arrives at 20% automatically, more is reclaimed through Self Assessment, and the resurrected personal allowance stacks on top. That combination is what produces the effective 60% saving on contributions aimed at the taper zone.
Salary Sacrifice Comes First
If your employer offers salary sacrifice, use it before any other route: it lowers adjusted net income at source, adds a National Insurance saving, and spares you reclaiming relief manually. It is the cleanest tool a £100k earner has, which is why it belongs at the top of the list rather than as an afterthought.
The Numbers That Frame Your Year
The 2025/26 annual allowance is £60,000 (limited to 100% of earnings). The tapered version of the allowance only bites at incomes well beyond £100k, so the full amount is generally yours to use, and timing contributions across tax years matters more here than at any lower salary. See our annual allowance guide and tax relief guide.
Advice Is Close to Non-Negotiable
Between the personal allowance trap, bonus timing and salary sacrifice design, £100k is where DIY planning most often leaks money. An FCA-regulated adviser will usually find the fee's worth in the first conversation.