How Does the Annual Allowance Get Calculated?

Most people get a 40,000 pound allowance which sounds a fantastically big sum to pay into pensions. HMRC uplift your opening benefits by the inflation figure the seep guy inflation figure in September 2020 Okay, so first thing they uplift the opening figure and then you compare the closing figure And that gives you the growth in year and you multiply that growth by 16 Now usually at this point someone says why 16? It's one of the things most often People don't understandthis including members of the treasury most recently But it's not based on your contributions paid The way it works simply for the NHS pension Is how the maths works is you look at the opening pension that you have built up