What is lifetime allowance protection?
The lifetime allowance is the total amount you can build up in all your pension savings without incurring a tax charge. Although there’s no limit on the amount of authorised benefits that can be provided for an individual from their registered pension schemes, there is a limit on the level of tax-privileged benefits.
How do I find out if I have lifetime allowance protection?
To check if your member has valid lifetime allowance protection, you can use the lifetime allowance scheme administrator look-up service. To use the look-up service, you’ll need your member’s protection notification number and their scheme administrator reference.
Can I protect my pension lifetime allowance?
You can keep on building up your pension, but must pay tax on money taken from your pensions that exceed your protected lifetime allowance. You can still apply if you already have previous protection, ie: enhanced protection. fixed protection.
When did Fixed Protection 2014 close?
6 April 2014
What is fixed protection?
| Type | Maintains the lifetime allowance at | Contributions must cease before |
|---|---|---|
| Fixed protection 2012 | £1.8 million | 6 April 2012 |
| Fixed protection 2014 | £1.5 million | 6 April 2014 |
| Fixed protection 2016 | £1.25 million | 6 April 2016 |
How do I avoid going over my lifetime pension allowance?
If you are married, one strategy that could help you avoid crossing the LTA threshold is to redirect your retirement savings into your spouse’s pension, as they will have their own separate Lifetime Allowance. This can be an effective way of avoiding the limit.
What is the difference between individual and fixed protection 2016?
A crucial difference between Individual Protection 2016 and Fixed Protection 2016 is that with the former an individual can still be an active member of a pension scheme, whereas with the latter the individual needs to have stopped contributing to a pension or accruing benefits as from 6 April 2016.