The government is planning a new regime to protect individuals who may be affected by the lifetime allowance lowering from £1.5m to £1.25m.

The intention is that unlike Fixed Protection, which requires a member to stop all future pension accrual, an individual will be able to protect a lifetime allowance equal to the greater of their pension benefits at 5th April 2014 (subject to the current Lifetime Allowance of £1.5m) and the new standard lifetime allowance, which will be reduced to £1.25m; whilst still allowing future pension savings.

The announcement of the introduction of Personalised Protection is necessary following the Chancellor’s autumn statement where the lifetime allowance is proposed to fall to £1.25m, down from the current £1.5m, which in turn is less than the lifetime allowance in 2011/12, which was £1.8m.

Opinions & Insights

Follow us

Stay in touch with our latest news and views

    Register for updates

    We issue regular updates which cover current financial planning topics. Please enter your email address if you would like to receive these. Please note that you may withdraw your consent to receive our updates at any time by notifying us at main business address.
     Thank you, you have been added to the mailing list, and will receive our next quarterly update.
     Please fill out the missing fields