Compare UK Pension Types
Every UK tax-relieved pension type, State Pension, Workplace DC, Workplace DB, SIPP, and Stakeholder, shares one £60,000 Annual Allowance for 2026/27. The Financial Services Compensation Scheme protects up to £85,000 per provider, and the tax-free lump-sum allowance is capped at £268,275. Data is sourced from DWP, HMRC, MoneyHelper, and the FCA Register.
Annual allowance, access age, tax-free lump sum, employer-match minimums, and FSCS protection, compared side by side below (last reviewed June 2026). See our methodology for how these figures are sourced and verified.
Pension types compared
5
Access-age range
55–66
Official sources
4
Last reviewed
2026-07-20
The short answer
Many people prioritise the full workplace employer match first, since declining it forfeits guaranteed matched money, then weigh a SIPP for flexibility or extra higher-rate relief, and use an ISA where access before age 55 matters. The right order depends on your personal circumstances (debt, emergency savings, tax band), so this is general information, not a recommendation, for a personalised view, use Pension Wise or an FCA-regulated adviser. The State Pension underpins all of it but rarely covers a full retirement on its own.
- Shared Annual Allowance
- £60,000
- Tax-free lump sum
- 25% (cap £268,275)
- Min access age
- 55 → 57 (2028)
- FSCS protection
- £85,000
Workplace DC, SIPP and stakeholder pensions share the same allowances; the difference is the employer match, investment choice, and cost.
Full comparison table
| Wrapper | Annual Allowance | Min access age | Tax-free lump sum | Employer min | FSCS |
|---|---|---|---|---|---|
| New State Pension | - | 66 | - | - | No |
| Workplace Defined Contribution pension | £60,000 | 55 | 25% | 3% | Yes |
| Workplace Defined Benefit pension | £60,000 | 55 | 25% | - | Yes |
| Self-Invested Personal Pension | £60,000 | 55 | 25% | - | Yes |
| Stakeholder Pension | £60,000 | 55 | 25% | - | Yes |
What the employer match is worth at a £30,000 salary
The table above shows employer-match minimums as a percentage. Applied to a £30,000 salary, here's what that match is actually worth in pounds a year, before your own contribution.
| Wrapper | Employer match | Worth per year at £30,000 |
|---|---|---|
| Workplace Defined Contribution pension | 3% | £900/yr |
Best-for / not-for
New State Pension
Best for: Everyone reaching State Pension age from 6 April 2016. Foundation income.
Not for: Sole retirement plan — full new SP is below relative poverty line for many.
Source: www.gov.uk · last reviewed 2026-05-20
Workplace Defined Contribution pension
Best for: Anyone in PAYE employment. Auto-enrolment + employer match is highest-ROI savings vehicle in the UK.
Not for: Money needed before age 55 (rising to 57 from 2028).
Source: www.gov.uk · last reviewed 2026-05-20
Workplace Defined Benefit pension
Best for: Members of NHS, Teachers, USS, LGPS, Civil Service and other DB schemes. Inflation-linked income for life.
Not for: Most private-sector workers since the 2000s — DB largely closed to new accruals outside the public sector.
Source: www.gov.uk · last reviewed 2026-05-20
Self-Invested Personal Pension
Best for: Self-employed, higher-earners topping up workplace, consolidators of multiple old workplace pots.
Not for: New savers who have not maxed employer match in workplace DC.
Source: www.fca.org.uk · last reviewed 2026-05-20
Stakeholder Pension
Best for: Capped-charge personal pension — narrowed niche since auto-enrolment.
Not for: Most savers — workplace DC pots with employer match dominate.
Source: www.gov.uk · last reviewed 2026-05-20
Put it to work
- See these wrappers applied to your own salary and pot in the projection calculator. Open the calculator
- Understand the employer match before choosing between a workplace pension and a SIPP. SIPP vs ISA vs workplace
- Check how the 25% tax-free lump sum and the £268,275 allowance work in practice. Lump-sum rules
General information, not a recommendation of any specific wrapper or provider.
PlainPension's calculators and guides reflect current UK pension rules, no figure is typed in without checking the source. This page reflects current UK pension rules and HMRC/GOV.UK guidance, checked before publishing. See our editorial standards & corrections policy, the methodology behind these figures, our data changelog of past corrections, or report an error.