All about tax

All about tax

There are certain tax limits when it comes to pension saving that you should be aware of as you are reviewing your options and starting to think about the future.

The first is the annual allowance, which limits the growth in your defined benefit pensions, and contributions to your defined contribution pensions, for tax relief purposes. 

And, once you come to take your benefits, there is a limit to the overall value of benefits you can build up over your lifetime. This is called the lifetime allowance and exceeding it will trigger an additional tax charge.

The tax charges can be punitive so make sure you are familiar with these allowances, how they might affect you, and – if you think they might have an impact on your plans or savings for the future – know where to go for some advice.