It's complicated: Advising on pension allowance cuts

The maximum amount savers can put into a pension scheme, before being hit with, in one adviser's words, "the hideous tax charge of 55%", is coming down from £1.5m to £1.25m in April next year. The government has given savers at, or approaching, the current limit, the chance to protect their pots through mechanisms called fixed protection (FP) 2014 and individual protection (IP) 2014. Whether this signals further, future cuts is a matter of opinion but it cannot be ruled out. The lifetime allowance was cut from £1.8m to £1.5m about two years' ago. Back then, a similar mechanism was put...