Your Industry  

Guide to Pensions Lifetime Allowance

    CPD
    Approx.60min

    Introduction

    The change to the lifetime allowance has implications for individuals with pension funds that are likely to be in excess of, or close to, the reduced lifetime allowance of £1.25m by the time retirement benefits are taken.

    This guide tackles who should apply for protection from the lifetime allowance tax charge, the pros and cons of freezing pension contributions and how to make sure your client still has the retirement they dreamed of.

    The guide makes it clear that it is not just high net worth clients who should be contemplating applying for protection from the latest tax on pension pots as growth could easily push pots past the new £1.25m limit.

    Supporting material comes from Mike Morrison, head of platform marketing of AJ Bell; John Lawson, head of policy at Aviva; Adrian Walker, retirement planning lead at Skandia; Ian Price, divisional director of pensions and consultancy at St James’s Place Wealth Management; Martin Tilley, director of technical services at Dentons; and Robert Graves, head of pensions technical services for Rowanmoor Group.

    In this guide

    CPD
    Approx.60min

    Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

    1. How much growth a year will see an individual aged 50 with a current pension pot of only £525,000 exceed the new £1.25m lifetime allowance, according to Mr Tilley?

    2. Can you make additional contributions with Fixed Protection 2014?

    3. What type of protection cannot be applied for until after April 2014?

    4. What should advisers base their deciding of whether to have individual or fixed protection on, according to Mr Price?

    5. When benefits are crystallised what is the annual amount of pension promised by the scheme multiplied by, according to Mr Morrison?

    6. What is the tax charge of the excess of the lifetime allowance if it is paid as a lump sum?

    Nearly There…

    You have successfully answered all the questions correctly, well done!

    I completed this CPD in

    To bank your CPD please complete the form below.

    Were the stated learning objectives met?

    Why weren't they met?

    What did you learn from undertaking this CPD exercise?

    Why did you undertake this piece of learning?

    Any comments about this article or FTAdviser's CPD in general?

    Banked!

    Congratulations, you have successfully completed and banked this piece of CPD

    Already Banked!

    You have already banked for this article.

    To bank your CPD you must sign in or

    Register

    One or more questions have been incorrectly answered,
 please review your answers and try again.

    Please complete all the above text fields to bank your CPD.

    More Your Industry CPDSee my completed CPDSee all CPD