Pensions Lifetime Allowance is set to rise

From the 6th of April 2019, the Lifetime Allowance is set to increase. The Lifetime Allowance is the amount of money that you can put in to your pension savings, before tax charges apply. The amount is rising from £1,030,000 to £1,055,000 for the 2019/2020 tax year. This increase is a product of the Consumer Price Index (CPI) measure of inflation, which determines the change in pension Lifetime Allowance year on year. The CPI measure of inflation this year was calculated at 2.4%.

This change will offer the chance for workers to save more money in their pension pots before they get hit with a large tax sum. Although this is positive news for some savers, there is also the annual allowance to consider, which limits the contribution that workers can pay in to their pension on a yearly basis.