Lifetime allowance

Following the announcement that the lifetime allowance for pension savings will be reduced from £1.25 million to £1 million from 6 April 2016, two protection regimes will be introduced which will have the same conditions as the previous fixed and individual protection regimes for individuals who want to rely on them.

The legislation for these protection regimes is expected to be included in Finance Bill 2016 In the meantime you should consider reminding your members that for the new ‘fixed protection’ they must have no benefit accrual after 6 April 2016, and for the new ‘individual protection’ they must have savings of at least £1m on 5 April 2016.

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