YOU shouldn't pay into your PENSION?? A reaction to the lifetime allowance charge | Pension UK.

YOU shouldn't pay into your PENSION (UK)! A reaction to the lifetime allowance charge (LTA)...

I'm making this in response to a few videos I have watched in relation to the Pension Lifetime Allowance Charge and my thoughts on some of the areas highlighted in those videos. I definitely think this is something individuals should be aware of, but is it something we should worry about?

We'll find out in this video...

The pension lifetime allowance is currently frozen until 2026 at £1,073,100 and is then due to increase by CPI each year. Tax relief on any pension benefits taken over this amount is recovered by the application of the lifetime allowance charge to the excess, which is charged at 25% if the excess is taken as a pension or 55% if it is taken as a lump sum.

⏰ Timestamps:
0:00 - Introduction
1:18 - Clarification on State Pension Age and Personal Pension Age
2:14 - What was said in some YouTube content?
3:23 - Who is impacted by this?
4:14 - Example 1 - 6.5% growth
5:37 - Example 2 - 10% growth
7:53 - Example of cost of exceeding the LTA

🗒 Please note:
The information provided is based on the current understanding of the relevant legislation and regulations and may be subject to alteration as a result of changes in legislation or practice. Also it may not reflect the options available under a specific product which may not be as wide as legislations and regulations allow.

All references to taxation are based on my understanding of current taxation law and practice and may be affected by future changes in legislation and the individual circumstances.

This channel is for information and education purposes only. Any information or guidance given does not act as financial advice. Please consult a financial adviser if you are unsure in anyway.

Keep in mind that the value of your investments can go down as well as up, so you could get back less than you invest.

⭐ My aim is to provide education and guidance to help individuals understand pensions, investments and protection.

Видео YOU shouldn't pay into your PENSION?? A reaction to the lifetime allowance charge | Pension UK. канала Edmund Bailey