What is the Lifetime Allowance?
This is the total amount you can build up in all your pensions over your lifetime without incurring a tax charge. It’s currently £1.055m. Full details can be found in our lifetime allowance factsheet.
Your pensions are measured against this allowance whenever you take benefits from them, when you turn 75, and if you die before the age of 75 with pension benefits left to take.
If you’ve already built up a large pension pot, you might be able to register for protection with HMRC so you don’t get caught out by this restriction. Tax rules can change.