'LTA timebomb' to hit more than a million workers - Royal London

290,000 already affected

Hannah Godfrey
clock • 2 min read

An estimated 1.25 million people can expect to breach the £1.03m lifetime allowance (LTA) before they retire, research by Royal London has indicated.

Some 290,000 workers already have pension rights above the lifetime limit, the life company says, and fewer than half of those are thought to have applied for ‘protection' against past reductions in the LTA. As such they could face big tax bills when they draw their pension - those who exceed the LTA could face a tax charge of up to 55% of their pension savings above £1.03m. The LTA has been cut three times since 2010. Most recently, in 2016 it was cut from £1.25m to £1m. The LTA rises in line with inflation and, as such, is currently set at £1.03m. According to Royal London, peopl...

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