Pension Lifetime Allowance
How to protect your pension from the lifetime allowance tax charge
More and more people are being affected by the pension lifetime allowance. After years of working hard and saving prudently, they risk losing a big chunk of their pension to the taxman.
A little planning can go a long way to reducing your tax bill. Taking action early will allow you to keep more of your pension and pay less in tax.
What is the Pension Lifetime Allowance?
The Pension Lifetime Allowance (LTA) is the total amount of money you can build up in your pension accounts without paying extra tax charges.
If you go over the LTA, you will pay a tax charge on the excess at the point you take an income or withdraw a lump sum from your pension.
Your Lifetime Allowance Consultation
If you’re concerned about the pension LTA, we offer a lifetime allowance consultation.
We will use this meeting to discuss your current pension situation and how we can help you avoid unnecessary lifetime allowance charges.
How to Avoid the Lifetime Allowance Charge
There are some simple steps you can take to avoid the lifetime allowance tax charge. These include:
… ✓ Applying for Individual Protection 2016
… ✓ Applying for Fixed Protection 2016
… ✓ Withdrawing only your tax-free cash
… ✓ Using your spouse’s pension
… ✓ Retiring earlier
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