You should act now in order to avail the benefits of pension as changes to monthly and annual pension saving allowances set to take place.
The Lifetime Allowance is all about the sum you save as pension in your lifetime without paying tax which is set to be reduced to £1 million from £1.25 million from April 6 2016.
Definitely, it means more pension investors will exceed the threshold, with the possibility of a punitive 55% tax charge on excess pension savings. The development could affect any pension investor, but is especially a worry for high earners and workers with decades-long service who already have substantial sums of pension.
Workers already with pension savings limit of over £1 million limit as on April 6 as well as those thinking of exceeding this limit in future, can apply for the protection of their pension pots from this tax proposal. Investors already close to £1 million mark or more may find it better to boost pension funding this year as suspending further pension funding may become necessary later.