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Maximum pension pot size

Hello it's my first time on this forum . I've recently stopped work and have decided its time to assess my pension arrangement . I've been sent a letter which says ill be paid a pension of x amount when I'm 60 plus an annuity purchased with a defined contribution fund of x amount . I also have a SIPP with x amount in it . It would appear that the total size of pension pot is only allowed to have a max of 1.5m in it . The first question is . Do I apply a multiplier to the amount ill be paid when I'm 60 and add the 3 amount together . Second question .... What happens if pension pot exceeds 1.5 m ? Thankyou in advance

Comments

  • dunstonh
    dunstonh Posts: 121,282 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    It would appear that the total size of pension pot is only allowed to have a max of 1.5m in it .

    There is no maximum. However, if you fund (or equivalent) gets above £1.5 million and you have no primary/enhanced/fixed protections in place then the excess above that can be taxed depending on how you take the pension benefits. (this answers your second question)
    Do I apply a multiplier to the amount ill be paid when I'm 60 and add the 3 amount together .

    Depends on the type of pension. Are the pensions money purchase or defined benefit?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • My pension is made up of 3 different parts .... 1. Defined benefit/final salary 2 . Defined contribution and 3 SIPP
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