Liberty SIPP: High earners risk sleepwalking into a lifetime allowance tax trap

Carmen Reichman
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The reduced lifetime allowance for pension contributions will take ordinary savers by surprise, research by self-invested personal pension (SIPP) provider Liberty SIPP has predicted.

Liberty SIPP this month polled 580 people with pension savings and found "worryingly high levels of ignorance and complacency" about the imminent changes, which will see a 55% tax charge imposed on pots of more than £1.25m Having crunched some numbers, Liberty SIPP found that many people in their thirties and forties with decent pension pots are likely to exceed the lifetime allowance of £1.25m without even making any further contributions. Liberty SIPP managing director John Fox said: "The reality is that many higher earners risk sleepwalking into a tax trap, as the reduction in the ...

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