Higher earners’ self-invested personal pension (SIPP) contributions soared in 2024/25 as investors looked to take full advantage of the annual allowance (AA) and carry forward from previous tax years, figures from Hargreaves Lansdown have shown.

Data of Hargreaves Lansdown clients revealed that the number of people contributing exactly £60,000 (the full AA) increased by 12 per cent year-on-year.

Furthermore, the number of investors contributing more than £60,000 to their Hargreaves Lansdown SIPP surged by 34 per cent.

The firm stated that this jump indicated that more people were looking to ‘mop up’ not only last year’s allowances, but also that left over from previous years through carry forward.

“SIPP contributions are surging among higher earners as they make the most of their allowances,” commented Hargreaves Lansdown head of retirement analysis, Helen Morrissey.

“The surge in contributions could be due to the removal of the lifetime allowance as well as the increase the AA to £60,000 in recent years.

“This meant that in the last year someone making full use of carry forward could contribute up to £200,000 to their pension. Someone in the same position this tax year can contribute up to £220,000.”

The number of people contributing exactly £3,600 to their HL SIPP remained relatively stable year-on-year, while those contributing exactly £10,000 rose by 2 per cent as they sought to make use of the money purchase AA.

“Contributions of exactly £3,600 per year remained flat year on year but it remains enormously popular,” Morrissey continued.

“Clients will often contribute this amount early in the tax year and then boost contributions further as their income allows. This can be a useful way for groups such as the self-employed with variable income to top up their pensions.

“It’s also the amount that can be contributed to the SIPP of a non-earning spouse or child.

“The tail end of the tax year was characterised by market turbulence caused by President Trump’s tariffs.

“However, the data shows SIPP clients were undaunted by the volatility, with 4 April being the biggest day ever for SIPP contributions to the HL SIPP.

“As yet, it’s too early to see how the situation plays out but it’s good to see so far people are keeping to their plan.

“Pensions are a long-term investment, and you need to take a long-term approach. Knee jerk reactions such as cutting contributions or making changes to investments risk crystallising losses which makes it harder for your fund to recover when markets do settle.”

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