Pension Lifetime & Annual Allowance

Pension Lifetime & Annual Allowance

What is LTA?

The lifetime allowance is a limit on the total value of pension benefits that an individual can build up, without facing a tax charge on the value of the benefits.

Pension Lifetime & Annual Allowance

Who is affected?

The lifetime allowance was introduced in 2006 at a level of £1.5 million. It then increased each year to 2010 when it reached a level of £1.8 million. Since 2010, there have been a number of pension reforms which have led to the lifetime allowance being reduced. Its level in the 2020/21 tax year is £1,073,100. 

The annual allowance is how much a person can contribute into their pension during each tax year and still receive tax relief on their contributions. The current annual allowance limit is £40,000 (2020/21).  

While many people are not affected by the annual or lifetime allowance, individuals may wish to take action if either of these limits is likely to apply to their situation. As pensions are invested over the long term, it is quite possible that pension pots may appear modest today but could exceed the lifetime allowance by the time the individual reaches retirement. It may be worth considering taking a pension early or stop contributing to the plan even if the individual has not retired, to avoid the pensions exceeding the lifetime allowance.

Free Initial Consultation

If you are having thoughts about using a financial adviser. You can find out more about Chadwick services with a free initial consultation. Whether by phone, in person or video call. 

Chadwicks IFA

Pension Planning Process

Having a pension plan in place can be a great way to secure your financial future. As of 2015, people from the age of 55 have been able to access their pension more flexibly. Great news for many, but its also important to understand how a pension affects your income. The team at Chadwicks IFA have over 100 years combined experience when it comes to pension planning. We have dealt with various schemes including LGPS, USS, TPS, NHS and many private pensions. When someone approches us to help with pension planning, we follow the below process. 

01

Partner With A Financial Adviser

We will partner you will a qualified adviser who specialises in your area of interest.

02

Learning About Your Financial situtaion

An initial consultation will be arranged. Whether by phone, video call or in person depending on your situation.

03

Prepare Your Bespoke Report

Your Chadwicks adviser, along with a member of our paraplanner team will prepare your bespoke report. 

Choosing Chadwicks IFA

We realise that there are many options when it comes to pension planning. Here are just a few reasons to speak with Chadwicks IFA.

Over 100 years of collective experience

Advising clients for over two decades

Chadwicks Pension Planning

Find out more about Pension Planning:

To arrange a free initial consultation or speak with a member of our team. Simply contact us using the form on this page. Alternatively, call or email us using the below details:

Chester

01244 317 111

London

020 7692 0615

Email

website@chadwicksifa.com

Free Initial Consultation

To arrange a free initial consultation with one of our qualified Financial Advisers. Simply place your details into the form below and we will be on contact.