Don’t go over the pension pot limit

Don’t ignore the ‘£1m pension’ news. Patrick Convey explains why your own finances could be caught by new limits and what to do to prepare for the big change in the months ahead.

Speed Meter VectorGiven the near constant amendments to pensions in the last few years and the fact that the most drastic changes to the industry in recent history took place from last month, it would have been feasible to expect that pensions could have been left out of this year’s Budget.

Unfortunately, the rumours of a cut to the lifetime allowance had been circling for some time.

From April 2016, the lifetime allowance – the maximum amount which can be saved into a pension tax free – will be reduced to £1m.