If you operate as the director of a limited company, saving in a pension is an effective way to reduce your corporation tax bill by making contributions as a business.

Meanwhile, personal contributions get a top-up from the government depending on your income tax bracket. Tax relief is at the highest marginal rate. For example, basic rate taxpayers get a 20% top-up, higher-rate tax payers can get 40% while additional-rate taxpayers can get up to 45%. Saving in a pension is the only way to get these government top ups.