The lifetime allowance was for the total amount of pension savings you could build up during your working life before you had to pay extra tax. It applied to the money in all your workplace pensions, including our Scheme, and any personal pensions you had – but not your State Pension.
The government abolished the lifetime allowance on 6 April 2024 and replaced it with two new allowances.
- The lump sum allowance. This limits the total amount of tax-free cash you can take when you retire to £268,275.
- The lump sum and death benefit allowance. This limits the tax-free death benefits that can be paid when someone dies to £1,073,100.