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£1m pension pot limit
ViolaLass
Posts: 5,764 Forumite
Can someone please explain how this works for pensions that don't have a 'pot' e.g. teachers. Does the limit not apply or is it worked out according to some notional pot value?
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Can someone please explain how this works for pensions that don't have a 'pot' e.g. teachers. Does the limit not apply or is it worked out according to some notional pot value?
For the LTA I believe a multiplier of 20 times your actual annual pension is used, so up to 50k ( x 16 for the annual allowance).Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0 -
I think for defined benefits, you multiply your yearly pension by 20 and add on any lump sum or AVC/SIPPs etc.0
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tigerspill wrote: »I think for defined benefits, you multiply your yearly pension by 20 and add on any lump sum or AVC/SIPPs etc.
Yup: but it really ought to be 30 rather than 20 if it is to reflect the reality of the rates you can get on index-linked annuities if you have a DC pension. Otherwise it's just a stunt to give an advantage to DB pension members. You don't suppose civil servants and politicians get DB pensions?Free the dunston one next time too.0 -
This is a bit out of date with the new budget rules but does this help
https://www.moneyadviceservice.org.uk/en/articles/the-lifetime-allowance-for-pension-savingsMFW OP's 2017 #101 £829.32/£5000
MFiT-T4 - #46 £0/£45k to reduce mortgage total
04/16 Mortgage start £153,892.45
MFW 2015 #63 £4229.71/£3000 - old Mortgage0
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