Pension Saving in Excess of The Annual Allowance

    View Author October 2011
    Since 6 April 2011, saving through registered pension plans has been restricted by an annual allowance of £50,000 (plus unused allowance from the previous three tax years). From 6 April 2012 the limit on lifetime saving through registered pension plans – the lifetime allowance – will reduce to £1.5m (from £1.8m). Employers need to consider how they will assist employees who are at or near these limits.

    Some employers are looking to cap pension savings in registered pension plans to avoid breaching the new allowances. The question remains: what alternative pension provision will be offered to mitigate the employees’ losses?