Your pension allowances are shrinking

Your pension allowances are shrinking

Cuts and adjustments made to the two main pension allowances since 2011 have made retirement planning all the more complicated. In 2010/11 the lifetime allowance (LTA) – which sets the effective tax-efficient ceiling on the total value of pension benefits – was £1,800,000. Back then, the corresponding annual allowance (AA) – which sets the effective tax-efficient ceiling on annual pension contributions – was £255,000….