The annual allowance is the amount of money you can invest in a pension and attract tax relief.
The current annual allowance is £40,000* but it may be possible to make a larger contribution as you can carry forward 3 years of unused relief.
* In the 2015 Summer Budget, Treasury confirmed a reduction in annual allowance for high earners. For every £2 of adjusted income over £150,000, the annual allowance will fall by £1 down to a minimum of £10,000 for those earning over £210,000.
The lifetime allowance is the maximum amount that can be held in your pensions without potentially incurring a tax charge on the surplus.
The current lifetime allowance is £1,055,000 (2019/20).
To read our quick guide to the lifetime allowance and current protections available, please click here.