March 2021 Budget – Lifetime Allowance frozen until 2026 at £1,073,100
The lifetime allowance is the total value which an individual can take from all their pension savings with the benefit of tax -free growth. The Government’s plan had been to increase this in line with inflation starting in 2016.
Lifetime Allowance charges are calculated at retirement. A lifetime allowance charge is levied at 25% if the excess is drawn as a pension (also subject to income tax) and at 55% if taken as a lump sum.
What does this mean for ALACE members?
Log in to the Pensions section of the member’s area for more information.