Lifetime allowance
If you’ve never accessed a pension, or you’ve only accessed pensions since 6 April 2024, then the old lifetime allowance won’t impact you.
From 6 April 2024, there are only limits on what you can take as tax-free lump sums, not on your total pension savings.
The lifetime allowance was a limit on the amount of pension savings you could have before an extra tax charge was applied. It’s now been abolished, but if you accessed a pension before 6 April 2024, you should keep a record of how much of the old allowance you used up.
The first time you want to access a pension after 6 April 2024, your current pension provider will ask you the percentage of the old lifetime allowance you’ve used so they can calculate how much of the new tax-free lump sum allowance you have left. You’ll find this information in the confirmation letter your pension provider(s) gave you when you accessed your pension(s), or in your annual pension statements since then.
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