The key pension reforms (and what they mean)

October 2010: Reducing the annual allowance (AA) and lifetime allowance (LTA) In October, the Treasury announced the AA would fall from £255,000 to £50,000 and the LTA would fall from £1.8m to £1.5m in April 2011. Analysts had predicted an AA as low as £40,000 and so were pleasantly surprised. There are now fears government plans to combine income tax with national insurance in a basic rate of 32% will complicate tax relief again, but the government said this will not happen for several years. October 2010: Raising the state pension age (SPA) The government announced during the Octo...