Whether your retirement is still a distant dream, or just around the corner, it is never too early to start planning – and never too late to review your arrangements.
In changing times, it is important to review your pension benefits. If you have more than one pension pot, it is still possible to protect your lifetime allowance up to £1,250,000, subject to your eligibility.
If you have not protected your lifetime allowance, from April 2016 it reduced to £1,000,000. Many people have exceeded their lifetime allowance without even knowing it, as they are members of defined benefit schemes and have no idea of their value.
When we review a client’s pension and they find out how large the pot is, many clients are pleasantly surprised. Until, that is, they realise that they face paying a penalty on everything above the lifetime allowance, which could be as much as 55% (in many cases) of the excess for additional rate taxpayers who are members of defined benefit schemes.
Help could be at hand if you act quickly
If you find yourself in this situation, there are things we can do to help. For example, before the end of this tax year we can still apply for protection up to £1,250,000. There is also some flexibility for clients who are in a defined benefit scheme where both their lifetime allowance and annual allowance have both been overfunded.
Finding some time to review your situation now could make a big difference in the future.
Call us today on Oakham 01572 759759 or Stamford 01780 437500 to arrange an informal meeting – at a time and a place to suit you.
The value of any investment with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than you invested.
The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances.