To encourage people to save for their retirement, the government offers tax incentives for savers. The tax you pay on your super contributions generally depends on whether the contributions were made before or after you paid income tax. The main incentive for superannuation saving is tax relief. For more information see Tax on Contributions. There are some limitations on saving however, such as the Annual Allowance and the Lifetime Allowance. When you come to retire, you will also be entitled to take a part of your pension fund as a tax-free lump sum, but the rest will usually be subject to income tax.
For further information on income tax see:
