lifetime allowance

The continued cut to the amount people can save in their pension pots before a tax charge applies could incentivise people to invest in higher risk products, an adviser has said.

The government should look into the glaring inequality in the tax system that favours defined benefit (DB) pension schemes over defined contribution (DC), Alan Higham has said.

The lifetime pension saving allowance has been cut from £1.25m to £1m in the Budget today.

Lifetime allowance cut is a tax grab with both hands

Chancellor George Osborne will cut the lifetime allowance of tax free pension savings from £1.25m to £1m in tomorrow's Budget, according to reports.

The £1.25m lifetime cap on tax free pension savings will affect workers who retire on anything from £20,000 a year, meaning those who start to save early could face tax charges of 55% when they retire, according to new research.

More advisers are worried about their clients incurring lifetime allowance (LTA) tax charges, according to retirement wealth platform James Hay Partnership, which saw queries around the upper contribution limit spike in the last quarter.

Protection from the lifetime allowance is a big issue. Martin Tilley looks at the importance of investment growth in determining who might be affected.

While the amount of flexibility available in pensions has increased since the Budget is there room for more? Neil MacGillivray looks to the ISA world for inspiration.

Nigel Hatt looks at the protection opportunities for those in danger of breaching the lifetime allowance.