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your personal pension pot.

15 May 2017, 18:59

just a question on peoples individual pensions pot. if Robert T or anyone for that matter could answer it would be much appreciated. I have recently received my p.60 for my pension for tax year 2017. on it near the bottom I noticed a bit that says 'Percentage of Standard Lifetime Allowance used. 3.71. ...now I assume this means I have used 3.71% of my pension pot. if this is the case, does this mean your pot can be exhausted? I was under the impression you got it for life. what if you lived to be 100. would you no longer get it if you had reached 100% of your funds. just wondered.


your personal pension pot.

15 May 2017, 19:14

The Lifetime Allowance is the limit on the amount of benefits that can be drawn from your pension/s before you have to pay additional tax. It’s currently £1 Million, so you’ve used up £37,100 of it.
There shouldn’t be any danger of you having to pay any extra tax! :thumbup

More info: https://www.pensionsadvisoryservice.org ... -allowance

your personal pension pot.

15 May 2017, 19:39

cheers Robert.

your personal pension pot.

18 May 2017, 08:33

RobertT wrote:The Lifetime Allowance is the limit on the amount of benefits that can be drawn from your pension/s before you have to pay additional tax. It’s currently £1 Million, so you’ve used up £37,100 of it.
There shouldn’t be any danger of you having to pay any extra tax! :thumbup

More info: https://www.pensionsadvisoryservice.org ... -allowance


I was going to ask the same question myself, so thanks daveyeff for posting this query and for RobertT's response.

your personal pension pot.

26 May 2017, 18:27

RobertT wrote:The Lifetime Allowance is the limit on the amount of benefits that can be drawn from your pension/s before you have to pay additional tax. It’s currently £1 Million, so you’ve used up £37,100 of it.
There shouldn’t be any danger of you having to pay any extra tax! :thumbup

More info: https://www.pensionsadvisoryservice.org ... -allowance

Hi
I took early retirement with enhanced benefits 2 years ago at age 56 with 40 years service, I received 2 p60s this year one for each pension the NRA 60 pension one quotes I have used 16.95% of lifetime allowance and the age 65 part states 7.32 %
I presume I add the 2 together which would equate to about 24% which I find hard to believe as I've only been drawing it for 2 years also theese percentage amounts are the same as on the initial paperwork I was given by Royal Mail 2years ago when I left so I am finding it quite hard to work out.
My lump sum and pension payments over 2 years would amount to around 98.000 so less than 10% of the lifetime allowance used to date.
Any help appreciated.
Thanks.

your personal pension pot.

27 May 2017, 05:50

Having looked into the lifetime allowance a little bit more, I think my previous explanation wasn’t quite right! :oops:

The percentage amount relates to the total amount of the LTA your pension/s are expected to use up. So Slider, unless you have more pensions tucked away somewhere, or if the rules change, you will only ever use up 24% of your LTA.

This explains it better: https://www.moneyadviceservice.org.uk/e ... on-savings

I think it’s fair to say that the LTA isn’t really an issue for the average postie. :thumbup

Sorry for any confusion.

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