Ndubuisi 'Andy' EgwimMoney Coach for Medics|Ex-NHS GP|21+ Yrs Investor| Founder, MoneyWiseDoctor.com|Helping Medics Avoid Big Money Mistakes

Maximize Your UK Pension £60K Tax Free Explained!

21 Aug 2025 · 1 min

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1:10

YouTube video by Ndubuisi 'Andy' Egwim explaining the UK pension annual allowance: the speaker states a £60,000 annual pension allowance is tax-relieved (no tax until withdrawal), that withdrawals are taxed based on the amount taken (not as a capital gain), and warns that certain public-sector schemes (example: NHS pension) may cause an annual allowance charge if you exceed the AA. The speaker also defines "AA" as Annual Allowance and notes some people have lower allowances.

Questions this video answers

£60,000

Contributions receive tax relief; there is no tax until you withdraw.

Withdrawals are taxed based on the amount withdrawn rather than as a capital gain.

Chapters

Everyone in the UK is allowed. If you're working, you allow the maximum of £60,000 that you can put into your pension. And it's tax free at the moment, you get tax relief on it. So there's no tax until you withdraw it. And even when you withdraw it, they don't tax your capital gain, they just tax it based on how much you withdraw. Basically, if you don't withdraw much, there's no much tax on it. Now you, you allow 60,000 pounds per taxi, as long as you make as much as 60k. Okay. If you put 60, 000 pounds on Farida, you work for the NHS, there might be a bit of a problem. Why? Can you hazard a guess? Or anyone that knows if Farida just puts 60, 000 pounds in her seat and she works for the NHS and she's in the NHS. Pension. Excellent. So Sonia said you go above the AA. Sonara Dima. Abbreviation. Now, is that aotic aneurysm annual allowance. So everybody's annual allowance is £60,000. Obviously some people have less. So £60,000 is the maximum. You don't want to cross that. 60,000, you might get like a charge, a penalty from HMOX.