On the 6th April the standard pensions Lifetime Allowance (LTA) will be reduced from £1.25m to £1m, leaving savers with a very important decision to make. A decision so important that it could impact the rest of their lives!
The LTA is the total amount you're allowed to save across all pensions without being taxed. Since its introduction in 2006 at a level of £1.5m the limit has gradually been lowered from its peak of £1.8m in 2010.
The lifetime allowance is taxed at a rate of 55% for any excess (amount above the lifetime allowance) taken as a lump sum, or 25% for any excess taken as income (in addition to your marginal UK income tax rate)
Thankfully as a UK Expat you could be able to avoid being affected by these changes but with April only a matter of weeks away it is important that you take action now to ensure you protect your savings!
If you have a combined pension fund approaching £800k or a projected retirement income of £35,000 pa or more you must act now to ensure you are not affected!