Annual allowance, lifetime allowance and applying for fixed protection

In April 2006, previous limits on the amount of pension you could build up in a pension scheme were replaced by annual and lifetime allowances which restrict the amount of pension you can build up tax-efficiently. You can build up pension benefits in excess of these allowances, but in most cases it will not be tax-efficient to do so.

The government has recently made changes to the level of these allowances. The annual allowance was reduced from £255,000 to £50,000 for the 2011/12 tax year and the lifetime allowance will reduce from £1.8 million to £1.5 million from 6 April 2012. This roughly equates to a pension of £75,000 pa.

Audio slides
Lifetime allowance This audio presentation tells you about the forthcoming changes to the lifetime allowance from 6 April 2012. We will talk you through the reduction to the lifetime allowance and the options that may be available to you if you think you will be impacted by this, including applying for fixed proection. We will cover: Assessing your benefits against the lifetime allowance. When and how tax is paid What protection is available What you need to consider	Speaker notes
Annual allowance This audio presentation tells you about the annual allowance which limits the amount of tax efficient pension savings you can make. We will cover: How the annual allowance works. How to use your annual allowance statement (found in the members area of the website).	Speaker notes

Case studies
The following case studies will help you compare the outcomes of staying in the scheme or opting out and applying for fixed protection. When you have finished reading through the case study you can print a copy of the slides and subistitue your own figures to reach you own conclusions. However, you own circumstances may be very different and you will only get the advice you need from an independent financial adviser.
Case study - Ben This case study is about Ben who is aged 60. His projected benefits are estimated at £1.8 million by his planned retirement age of 65.
Case study - Adam This case study is about Adam who is aged 50. His projected benefits are estimated at £1.5 million by his planned retirement age of 65.