More than 1m savers face 55% pension tax

News Update from CFM (UK) Ltd: Analysis by Aviva indicates the number of people who exceed the limit of the "pension lifetime allowance" could rise to over 1m. Savers who break the limit face penal taxes of as much as 55% when they subsequently withdraw their pension money. From April 6 the allowance will fall from £1.25m to £1m, but ministers have stressed only 55,000 will be hit by the latest reduction in the limit. However, Aviva’s findings suggest that anyone currently earning £80,000 or more is in danger of breaching the threshold, as the sums they are likely to save in a working life - coupled with pension tax relief - could push their pension pot above £1m.

The Daily Telegraph

Posted on January 21st 2016

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