Uploaded March 2026 | Updated September 2026, 2 weeks ago
Most people think of a pension as something you worry about later. What they don't realise is that every pound you put in gets topped up by the government — and for higher earners, the maths gets surprisingly powerful.
In this video, Ramin from PensionCraft breaks down exactly how pension tax relief works, why it behaves differently depending on which tax bracket you're in, and how a pension contribution can actually reduce the income tax you pay today — not just in retirement.
We cover:
00:00 How pension tax relief works
01:04 What is tax relief and how it works
02:50 Salary sacrifice explained
03:16 How can a pension help you pay less tax?
04:35 The £100k tax trap example
05:33 How much can you put into a pension?
06:58 How to pick the right SIPP
👉 Explore InvestEngine Self Invested Personal Pensions: investengine.com/sipp
👉 Read our blog: investengine.com/insights/articles
👉 Check out our glossary: help.investengine.com/hc/en-gb/articles/16957060511005-Investment-Glossary
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📱 Download the Android app: bit.ly/4aRrBy8
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Disclaimer: Capital at risk. ETF costs apply. Tax treatment depends on individual circumstances and may be subject to change. This video is for information only and is not financial advice. Information correct as of March 2026.
Most people think of a pension as something you worry about later. What they don't realise is that every pound you put in gets topped up by the government — and for higher earners, the maths gets surprisingly powerful.
In this video, Ramin from PensionCraft breaks down exactly how pension tax relief works, why it behaves differently depending on which tax bracket you're in, and how a pension contribution can actually reduce the income tax you pay today — not just in retirement.
We cover:
00:00 How pension tax relief works
01:04 What is tax relief and how it works
02:50 Salary sacrifice explained
03:16 How can a pension help you pay less tax?
04:35 The £100k tax trap example
05:33 How much can you put into a pension?
06:58 How to pick the right SIPP
👉 Explore InvestEngine Self Invested Personal Pensions: investengine.com/sipp
👉 Read our blog: investengine.com/insights/articles
👉 Check out our glossary: help.investengine.com/hc/en-gb/articles/16957060511005-Investment-Glossary
📱 Download the IOS app: apple.co/3N7i7pe
📱 Download the Android app: bit.ly/4aRrBy8
Don't miss out on our regular finance education videos, hit the subscribe button to stay informed and empowered on your investment path.
Want to talk about it? Join the InvestEngine Community: community.investengine.com
Follow us on social media:
Instagram: bit.ly/4aRrBOE
TikTok: bit.ly/3PjSwtU
LinkedIn: bit.ly/4re7gru
Reddit: bit.ly/4lgINAP
Disclaimer: Capital at risk. ETF costs apply. Tax treatment depends on individual circumstances and may be subject to change. This video is for information only and is not financial advice. Information correct as of March 2026.
