Mike Morrison goes through the protection options for those clients likely to exceed the new lifetime allowance.
The concepts of annual and standard lifetime allowances (SLA) have been with us since A-Day and it was hoped that the levels at which they were set would progress upwards appropriately. Unfortunately, we now know that this is not going to be the case. The annual allowance was amended as from 6 April 2011 and has now become £50,000 per annum. The SLA will reduce from its current level of £1.8m to £1.5m effective from 6 April 2012. At A-Day we had primary protection and enhanced protection to protect those people who already had a large pension fund and shortly we will have a new one...
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