Applications for lifetime allowance protection 'slowing to a trickle'

4,000 people registered in the last year

clock • 2 min read

A freedom of information request submitted by LCP revealed that new applicants for lifetime allowance (LTA) protection have trickled down to 4,000 in the last year.

The firm said the lack of applicants was a concern after Chancellor Rishi Sunak announced a five-year freeze on LTA pension contributions over £1m earlier this year. The set of rules allow people to ‘protect' themselves against cuts in the LTA for pension tax relief, and even includes protection for individuals after they have died. LCP said some people may be "missing out" and could face "unnecessary" tax bills. Steve Webb, partner at LCP, said: "Limits on pension tax relief have been cut repeatedly in recent years and savers who planned on the basis of much higher limits can find...

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

FCA to crack down on life insurers with 'slower' pension transfer service times

FCA to crack down on life insurers with 'slower' pension transfer service times

Regulator warns slow pension transfers risk harming client outcomes

Isabel Baxter
clock 15 August 2025 • 5 min read
Tony Müdd: The QROPS market is dead, isn't it?

Tony Müdd: The QROPS market is dead, isn't it?

'The tax a member pays on their QROPS income hinges on a dizzying array of factors'

Tony Müdd
clock 11 August 2025 • 11 min read
Average pension transfer times fall

Average pension transfer times fall

Origo data suggests simpler pension transfers average 10.8 days

Martin Richmond
clock 11 August 2025 • 2 min read