Why breaching the LTA might be a client's best option

The number of pension savers approaching the soon-to-be-cut lifetime allowance (LTA) of £1.5m is probably higher than you might imagine. Think of all those lucky people in generous final salary schemes, for example doctors, dentists and other higher earners in the NHS. The LTA itself is being reduced from £1.5m to £1.25m in April and as a consequence, some people with sizeable pension pots who thought they would remain within the allowance could now breach the revised cap. A mechanism is in place to stop people falling foul of the change – applying for fixed protection at £1.5m. But i...