The lifetime allowance and pension protection opportunities

clock

Nigel Hatt looks at the protection opportunities for those in danger of breaching the lifetime allowance.

Since 2006, the Government has set a limit on the amount of pension savings that a UK-based individual can build up without having to pay an additional tax charge, known as the lifetime allowance (LTA). From the 2014-15 tax year, it will drop to £1.25m. This means that the maximum pension an individual will be able to accumulate without incurring a one-off tax charge will be roughly £40,000 per annum – assuming current annuity rates and that they choose to receive a tax-free cash sum from their pension plan. 2014 pension protection opportunities There is, however, some good news. T...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Guaranteed income integration critical to guided retirement success

Guaranteed income integration critical to guided retirement success

Research finds annuitisation rates of 55% to 60% are possible without compulsion

Jonathan Stapleton
clock 16 September 2026 • 5 min read
DWP seeks small pension pot default consolidator solution

DWP seeks small pension pot default consolidator solution

Government aims to have small pot consolidation operational from 2030

Jonathan Stapleton
clock 15 September 2026 • 2 min read
Adviser chases Hartley Pensions for ten months over clients' SSAS transfer

Adviser chases Hartley Pensions for ten months over clients' SSAS transfer

Takes case to The Pensions Ombudsman

clock 10 September 2026 • 2 min read