Key pension facts

Lifetime allowance


During the 2021/22 financial year, the amount you could draw from a pension at retirement without incurring additional tax was set at £1,073,100. 

If you drew benefits in excess of this amount you would have faced an additional lifetime allowance ‘charge’. Either a total tax of 55% if the excess amount was taken as a lump sum, or 25% on top of regular income tax if taken as a regular income (annuity or income drawdown). 

In 2023’s Spring Budget, the lifetime allowance will be scrapped from 6th April 2023. 

See also our retirement planning and tax benefits of a pension blog posts.

We’ll never leave you high and dry

Our customer support team is rated "Excellent" and is always on hand to help you. There are 3 ways you can contact us:
tick red icon

Log in to our website and chat to us

tick red icon

Email us on

tick red icon

Call us on 02039517253

Close Cookie Preference Manager
Cookie Settings
By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage and assist in our marketing efforts.
Strictly Necessary (Always Active)
Cookies required to enable basic website functionality.
Made by Flinch 77
Oops! Something went wrong while submitting the form.