United Kingdom: Lifetime Allowance

In 2006 the Lifetime Allowance which limits how much an individual can save into a pension scheme tax free was introduced. Registered Life Assurance benefits count towards that Lifetime Allowance.

Since 2006 the Lifetime Allowance has been reduced to UKP 1M, nearly half of what is was when it was introduced. Many employees with pension benefits and a Life Assurance benefits will be impacted.

When the Lifetime Allowance was introduced the government offered the possibility to ´protect´ pension benefits already above that level.

There are a number of different types of pension protection and different rules apply to each variation. Employers need to be aware that pension protection could be lost if members join an new Registered Life Assurance arrangement. Employers need to take care to avoid impact on employees with pension protection.

Asinta Partner Punter Southall Health & Protection has put together a comprehensive guide specifically dealing with the Lifetime Allowance with solid and independent advice for employers.

If you are an employer in the UK, take the time to read the guide via this link PSHP Lifetime Allowance Guide