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Managing the lifetime allowance

After saving so hard and making the most of the tax relief that is available when contributing to a pension, people want to be able to withdraw their benefits in the most tax efficient way. To manage the costs of the tax reliefs available, the Government has limited the amount of pension benefits that can be accumulated before additional tax charges apply. This limit is known as the Lifetime Allowance (LTA). Advisers need to know how to manage the LTA for those clients who are close to or in excess of the limit. Advisers also need to know how to protect their clients.

LTA planning – registering for protection

The Standard Lifetime Allowance (SLA) applicable to private pension savings from 6 April 2019 is £1.055m.

The Government allows registered pension scheme members to protect:

  • the value of their pension savings built up before 5 April 2016, or
  • the future value of their pension savings, if they believe they will eventually exceed the prevailing SLA.

This will enable an individual to reduce or avoid any additional tax charge that would otherwise apply.

Clients in this position are in need of advice to help them draw on their savings tax-efficiently and continue to build their retirement pot.


Case studies

Below are a number of case studies showing you different planning considerations for clients with significant pension savings where the reduced Lifetime Allowance may be an issue.



Need more information? Please contact your consultant or call our technical team on 02380 726 010 (between 8.00am and 5.00pm Monday – Friday).

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