Will you be affected by the new Lifetime Allowance?

You usually pay tax if your pension pots are worth more than the lifetime allowance. This was recently £1.25 million before it was reduced to £1 million on 6th April 2016.

Ask your pension provider how much of your lifetime allowance you've used.

If you're in more than one pension scheme, you must add up what you&39;ve used in all pension schemes you belong to.

What counts towards your allowance depends on the type of pension pot you get

Defined contribution - personal, stakeholder and most workplace schemes: Money in pension pots that goes towards paying you, however you decide to take the money

Defined benefit - some workplace schemes: Usually 20 times the pension you get in the first year plus your lump sum - check with your pension provide.

While most people aren't affected by the lifetime allowance, you should take action if the value of your pension benefits is approaching, or above, the lifetime allowance. As pensions are normally a long term commitment, what might appear modest today could exceed the lifetime allowance by the time you want to take your benefits.

The rate of tax you pay on pension savings above your lifetime allowance depends on how the money is paid to you - the rate is:

  • 55% if you get it as a lump sum
  • 25% if you get it any other way, e.g. pension payments or cash withdrawals

If you have lifetime allowance protection

Lifetime allowance protection increases your lifetime allowance

Your protection certificate tells you:

  • How much lifetime allowance you have
  • The type of protection you have, eg 'primary', 'enhanced' or 'fixed'
  • Your protection certificate number
  • Tell your pension provider the type of protection and certificate number when you decide to take money from your pension pot.

    You may be able to apply for 'individual protection 2014' if your pension savings were above £1.25 million on 5 April 2014

Would you prefer to talk to a female adviser about your finances?

Would you prefer to talk to a female adviser about your finances? A recent report that shows many women are put off seeking financial advice due to it being a male dominated profession.

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Look no further, we can answer your questions, review your pension, and will let you know if you could benefit from a final salary pension transfer.
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Will you be affected by the new Lifetime Allowance limit?

You usually pay tax if your pension pots are worth more than the lifetime allowance.
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New Personal Savings Allowance

From 6 April 2016, if you're a basic rate taxpayer you'll be able to earn up to £1,000 in savings income tax-free.
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