Do you need to protect your pension?

A difficult choice faces hundreds of thousands of people who are contributing to pension plans, says the Financial Times. Next April, the lifetime allowance – the maximum permitted value of an individual’s pension fund – falls from £1.5 million to £1.25 million. You can apply for ‘Fixed Protection 2014’ which allows you to keep the higher allowance. The trouble is that your fund now may be well below the £1.5 million level but your current and future contributions plus investment growth may take it well above that level. The decision has to be made by 5th April 2014. Experts warn that getting it wrong could cost tens of thousands of pounds.