Research · 2026-05-20

UK Pension Wrapper Comparison — Annual Allowance, Access Age, Tax Relief

Every UK pension wrapper PlainPension covers — State, Workplace DC, Workplace DB, SIPP, Stakeholder — with annual allowance, min access age, tax-free lump sum, employer match, and FSCS protection. Live SSR query against pension_wrappers.

Research period:

Reviewed by PlainPension Editorial on 2026-05-20

PlainPension's database currently covers 5 UK pension wrappers: the New State Pension, Workplace Defined Contribution, Workplace Defined Benefit, the Self-Invested Personal Pension, and Stakeholder. 4 of these have a numerical Annual Allowance (the State Pension does not — it is earned via NI qualifying years, not by contribution). The maximum Annual Allowance across all DC/DB wrappers is £60,000 in the current tax year. 4 of the wrappers come with explicit FSCS protection in the event of provider failure.

Annual Allowance by wrapper (£)

Workplace DC60000Workplace DB60000SIPP60000Stakeholder60000

Full wrapper comparison

Wrapper Annual Allowance Min access age Tax-free lump sum Employer min Employee min FSCS
New State Pension — 66 — — — —
Workplace Defined Contribution pension £60,000 55 25% 3% 5% ✓
Workplace Defined Benefit pension £60,000 55 25% — — ✓
Self-Invested Personal Pension £60,000 55 25% — — ✓
Stakeholder Pension £60,000 55 25% — — ✓

Best-for and not-for

From the PlainPension database — short editorial guidance on which saver each wrapper suits and which it does not.

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: https://www.gov.uk/new-state-pension

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: https://www.gov.uk/workplace-pensions

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: https://www.gov.uk/workplace-pensions/what-you-get

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: https://www.fca.org.uk/consumers/pensions

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: https://www.gov.uk/personal-pensions-your-rights

Sources

For our methodology and refresh schedule see the methodology page. For an explainer of which wrapper should come first in your saving sequence see SIPP vs ISA vs Workplace Pension.

Limitations

Each wrapper above operates under specific eligibility, contribution, and access rules that interact with your personal tax position, employment status, and family circumstances. The Annual Allowance shown is the standard headline figure — for high earners the taper reduces this on a sliding scale (see Annual Allowance, Taper, and MPAA). For Workplace DB schemes the “Annual Allowance” figure refers to the deemed contribution value, calculated as 16× the increase in DB entitlement plus any associated lump sum, with an inflation-uprate adjustment. Consult an FCA-regulated adviser or MoneyHelper's free Pension Wise service for any material decisions.