THE NEW PENSION TAPERED ALLOWANCE
The current annual pension allowance for those with less than £1,250,000 in pension savings is 100% of your earned income up to a maximum of £40,000.
WEF 6th April 2016, individuals earning greater than £110,000 will be assessed for a new ‘allowance restriction’. If imposed, the restriction could limit your annual pension savings to no more than £10,000 for those earning over £210,000.
This proposal along with the 2016/17 lower Lifetime Allowance, will mean that for final salary scheme members, continued accrual into pension plans may be questionable. We have over the recent years provided a great deal of advice to those currently enjoying such schemes, and welcome tackling these new obstacles with you should you require our assistance.
We have a detailed note available for those who wish to know more. It may still be possible to maximise your pensions before this new initiative comes into force. If you are interested in doing this then please contact us as soon as possible! There are very few financial advisers qualified to advise in this area, and with a March 2016 deadline you need to be planning now.