There is just two months to go before new rules restrict pension allowances and it’s time for those affected to take action, says the Financial Times.
From April 2014, the lifetime allowance (the value of all your pension pots) drops from £1.5m to £1.25m and a surprisingly large number of people – particularly members of ‘final salary’ pension schemes – are affected. Those who exceed the allowance will face a 55% tax charge. There are two forms of ‘protection’ which can be applied for to escape or mitigate the tax.