Summer may be here, but what about the Lifetime Allowance freeze?

So, essentially, the total amount you can hold in your pension without being taxed on withdrawals is static for the next few years, which means that a growing number of people may need to start considering a more comprehensive range of savings options for retirement to avoid a potential tax bill.

Tax is currently payable at 55% on everything over the limit if you take the money as a lump sum, or 25% if you take the money in another way, such as drawdown or through an annuity. Suppose you’re nearing the Lifetime Allowance (LTA), and an increasing number of people will be in this situation due to the big freeze. In that case, it’s worth considering additional options available to complement saving for retirement.

There are a whole host of scenarios and outcomes depending on your circumstances. The calculations around pensions and the LTA can be very complex. So careful consideration of your options is essential before making any decisions.

Important information: Our website offers information about investing and saving, but not personal advice. If you’re not sure which services are right for you, please request advice from Hilltop’s financial advisers. Remember that investments can go up and down in value, so you could get back less than you put in.

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We just need to take a few more details to understand what we can help you with and when is convenient for us to call you back. Gives you a chance to pop the kettle on ☕

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What would you like our expert advice on?

Pensions

Investments

Insurance

pension advice

Other

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Is there any advice in particular?

Review

Pension drawdown

Drawdown

Pension consolidation

Consolidation

Pension performance

Transfers

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