How to get your pension contributions refunded

If you leave your pension scheme, you don’t lose the money you’ve built up. You just won’t add any more of your own money to it.  

You normally have these options:

• leave it where it is – the provider will continue to manage it and will pay out when you retire, or 
• move it to a new scheme – such as one at your new employer.

But if you leave within 30 days of joining – or two years if it’s a defined benefit pension – you can choose to have your contributions refunded. You just won’t get any amounts your employer has added.

For more information, see Leaving a pension scheme.

For help with moving your pension, see defined benefit transfers or defined contribution transfers.  

There are usually two scenarios where you can ask for a refund of your pension contributions:

To ask for your pension payments back, you usually need to leave your pension scheme within 30 days of joining, or within two years if it’s a defined benefit or final salary pension:

If you leave after these periods, you’ll either need to keep the pension where it is, or transfer it to another provider.

Contributions into your pension (both yours and your employer's) are normally tax-free up to the amount of your salary, or £60,000 – whichever is lower. If you earn £0 to £3,600, the limit is £3,600.

If you pay more in than this, you’ll have to pay tax. To avoid this, you can usually ask for a refund of your contributions (not your employer’s) above the limit – this called a ‘refund of excess contributions lump sum’.

For more information, see Tax relief and your pension.

You’ll get the amount you paid into the pension scheme back, minus any tax that needs to be paid (you won’t pay tax on a refund of excess contributions lump sum): 

• 20% tax on the first £20,000 you’re refunded
• 50% tax above this. 

If you’re withdrawing from a pension you set up yourself, the provider might also hold some money back to cover investment costs.

You won’t get any of the money your employer has contributed. This includes any contributions you’ve made using salary sacrifice. Find out more in our guide Salary sacrifice and your pension.

Keeping the money in the pension and moving it to another provider could be better value as it will include any contributions made by your employer. You’ll also keep any growth your pension may have built in the period since you joined.

Contact your pension provider and ask how to apply for a refund of your contributions. You’ll often need to complete a form.

The provider will then check if you’re eligible. If you are, they will arrange for the payment to be made to you.