UK pension refund: can you claim back your pension contributions?

In the UK, you’ll automatically be signed up to your workplace pension, if you’re eligible, under auto enrolment rules.

However, if you decide to opt out, can you claim your pension back, or reclaim your contributions another way? We explain how pension refunds work in the UK, who's eligible, and what to expect.

What is a pension refund?  

A pension refund is when contributions you’ve already made to a specific pension fund are repaid. 

Whether you can get a pension refund depends on your circumstances and it’s not always possible. 

If you don’t claim a pension refund, your money will remain invested until you access it in later life.

Currently you can access your pension from age 55, but that’s rising to 57 in 2028.

Can I get a pension refund? 

You may be able to get a pension refund, but the length of time you have to request one depends on the type of pension you have.

We’ll run through the different types of pensions and how long you have to request a refund: 

• Defined contribution pension: If you leave the pension scheme within 30 days of joining, you can request a refund. 

• Defined benefit or final salary pension: If you decide to leave a defined benefit pension within two years of joining, you can request a refund of your contributions.  

• Personal, stakeholder or self-invested personal pension (SIPP): You usually have 30 days within signing up to the pension to request a refund. However, it can be longer, so check with your pension provider.  

It’s worth noting that your employer may re-enrol you in a pension every three years if you’re eligible (but you can opt out again).  

Am I eligible for a pension lump sum refund?

You may be eligible for a lump sum refund if your contributions in a tax year exceed 100% of your earnings, this is known as an excess contribution lump sum refund.

Eligibility and the amount you can claim back depend on your pension provider and the tax year involved, so it's worth checking directly with your provider before assuming you qualify.

You may also be able to request a pension refund for the last five years, if you have a public pension and are eligible, but you’ll need to talk to your provider.  

A pension refund will deplete your pension savings, so it’s worth getting expert financial advice before you make a decision. 

Can I get a refund if I have an NHS pension? 

If you have an NHS pension, you can get a refund of your contributions if you leave within two years of joining the scheme and have not yet reached state pension age.  

How much will I get back from an NHS pension refund?

You'll usually get back the contributions you personally paid in, minus tax and any National Insurance deductions.

Employer contributions aren't refunded. NHS Pensions can confirm your exact figure once you submit a refund request.

What if I want a pension refund after the time period ends? 

If you want to leave a pension after the above periods end, you won’t be able to get a refund, so you’ll have to either: 

• Keep your pension where it is and access it when you retire 

• Move it to another provider 

You can choose to rejoin a pension scheme in the future, or you may be automatically re-enrolled if you are eligible.  

What should I consider before requesting a pension refund? 

Building a pension can take decades, and withdrawing money can impact how much you have for retirement, so it’s a good idea to think carefully before requesting a pension refund. 

If you’re unsure, you can also consider getting professional financial advice. 

When you get a pension refund, you won’t receive anything paid via salary sacrifice or employer contributions.  

While you may only have a small pension at the beginning of your career, it can snowball into a much bigger pot as employer contributions, tax relief, and compound interest can boost it. 

Compound interest, which is the interest you earn on interest, can be particularly effective over a long period in boosting your pension pot. 

The below calculator shows how much your savings can grow thanks to compound interest, but this is not guaranteed as your pension fund's value can rise and fall.

Some employers may offer to increase their contributions if you contribute more, helping grow your money even further.  This is called matching.

If you are concerned about performance, you can review your investment strategy - even with a workplace pension (not including defined benefit pensions).

Of course, the past performance of a pension fund is not an indication of future performance; the value can rise and fall. 

Alternatively, if you find tracking many pensions overwhelming, you can consolidate them. However, you shouldn’t consolidate your current workplace pension as you would lose employer contributions.

Pension consolidation helps make your pensions easier to manage and it can reduce costs, but it’s important to do your research and ensure you don’t lose any valuable pension benefits as a result.

If you want guidance on how to boost your pension, a financial adviser can help by looking at your pension, personal circumstances, and future goals to offer tailored recommendations. 

Unbiased can quickly connect you to a financial adviser regulated by the Financial Conduct Authority (FCA).  

How long does it take to get a pension refund? 

If you’re eligible for a pension refund, contact your provider to find out how to get your money back. 

You’ll need to fill out any forms (and share these with your employer if necessary) and send them back. 

Your pension contributions can be returned in up to 10 working days, but this can be delayed if more information is required.  

What will I receive as part of my pension refund? 

You should receive the amount you paid into the pension, minus any tax, which is 20% on any amount up to £20,000 and 50% tax for refunds above £20,000. 

There also may be national insurance deductions to your refund.  

If you’ve made any contributions via salary sacrifice and your employer has paid into the pension, you won’t get this back, so you’re essentially missing out on free money.  

You may also lose some money from a personal pension you’ve set up, as the provider may keep some for any investment costs.  

Can I opt back into a pension scheme? 

You can opt back into your workplace pension scheme by writing to your employer. 

It’s worth stressing your employer doesn’t have to re-enrol you as you only have the right to rejoin the scheme once a year. 

You could save into a personal pension, but you wouldn’t get employer contributions.

Can I make additional pension contributions? 

If you’ve rejoined a pension scheme you may be able to make up for lost time by increasing your contributions.

Each year you can pay in 100% of your earnings up to £60,000. This is the annual allowance for pensions.

Need expert pension advice? 

If you need support or guidance with your pension, including how to boost your pot or take advantage of any allowances, a financial adviser can help. 

Unbiased can quickly connect you with a financial adviser regulated by the Financial Conduct Authority.