Pension pot

A pension pot is for saving towards retirement. You can start withdrawing your money from age 55 (57 from 2028).

Every time you add money, you’ll get a 25% bonus added automatically (this usually arrives at the end of the following month).

We call this a bonus as it’s like free money from the government. It’s actually tax relief, and is to refund tax you’ve paid (or will pay) on your income.

If you pay 40% or 45% tax, you can claim more back via a Self Assessment tax return or directly from HMRC.

Keep in mind, tax rules may change, and your tax benefits depend on your circumstances.