Getting to grips with the Lifetime Allowance
If your pension pot breaches £1m, you could face punitive taxes when you retire. So how can you protect your funds?
With a significant proportion of the UK population facing a shortfall in retirement income, the government has used tax breaks to encourage long-term pension saving. However, those saving too much could face a potential tax charge of up to 55% if their fund value breaches an upper limit, known as the pensions Lifetime Allowance (LTA).
