A break down of how to protect your clients from the lifetime allowance

Options involving complex protection rules go under the spotlight

clock • 3 min read

With the lifetime allowance (LTA) frozen at £1,073,100 until April 2026, more clients than ever are feeling the squeeze on their pension savings, Bethany Joslyn writes…

Thankfully the freeze was not extended further in the recent Autumn Statement, but we've still seen an increase in queries about what LTA protections are available to clients worried about exceeding the current limit. The good news is that it's still possible to lock in a higher protected LTA with either fixed protection 2016 (FP16) or individual protection 2016 (IP16). Clients can still apply for both as there is no application deadline. But the protection rules can be complex and there are a few technical points to consider when advising clients on this topic. Fixed protection 2016 ...

To continue reading this article...

Join Professional Adviser

  • 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

Port Talbot, Wales

'Model behaviour' sees Quilter avoid penalty for Lighthouse/British Steel

Comes after Lighthouse Advisory Services was censured last month

Hope William-Smith
clock 01 June 2023 • 2 min read
Newport, Wales

Newport firm Niche IFA stops trading as FSCS begins British Steel probe

The lifeboat fund began its investigation at the end of last week

Hope William-Smith
clock 30 May 2023 • 1 min read
Aegon pensions director Steven Cameron

Advisers back track on centralised retirement propositions

Retirement market and adviser sentiment changes researched

Hope William-Smith
clock 23 May 2023 • 1 min read