If the value of all your pension savings is likely to breach the standard lifetime allowance limit (£1 million from 6 April 2016) there are valuable ‘protections’ available to you which could potentially restore you with a higher lifetime allowance limit.
Fixed Protection 2016 (FP2016) will be available to those who do not already hold a previous version of fixed, enhanced or primary protection. This will allow you to retain a £1.25 million lifetime allowance limit. Applications will be available from 6 April 2016, however, as benefit accrual must cease as at 5 April this is an important decision to consider now.
Individual Protection 2016 (IP2016) is available for those that have pension savings in excess of £1 million as at 5 April. Pension savers with this protection are able to carry on contributing to their pension.
Can you protect your pension pot? This is a complex area and we often help new clients who have not received the correct advice with regards to pension savings and their protection options.
To establish the best option for you, please call Cavendish on 020 7636 7006.