Pension lifetime allowance
The risks of saving over £1 million in your pension, and what you can do to reduce the tax sting
There’s a limit on the total value of pension benefits you can build up throughout your lifetime without getting a tax charge. This limit is known as the lifetime allowance. It’s now £1,055,000.
This factsheet explains:
- What the lifetime allowance is and when it applies
- How to calculate how close you are to the limit
- What you can do to protect yourself from the lifetime allowance tax charge
This factsheet isn’t personal advice. Pension and tax rules can change, and any benefits will depend on your circumstances. What you decide to do with your pension is an important decision, and if you’re unsure you should seek advice.