Limits for high earners

The Lifetime Allowance
The lifetime allowance is the amount you are allowed to build up in pension benefits during your lifetime, without incurring a tax charge. So the lifetime allowance is mainly an issue as benefits come into payment.

It may be that you have different pension benefits from various sources, each coming on stream at different times. If so, each time a set of benefits comes into payment, that uses up some of your lifetime allowance. On the right are the Lifetime Allowances for the next few years.

To check the value of your benefits from us against the lifetime allowance, you simply multiply your annual pension by 20, then add in any one off benefits, such as your lump sum, or the value of any AVCs you may have.

From April 2012 the lifetime allowance will go down to £1.5 million. Rates beyond this to follow.