Annual Allowance - DB Pension Accrual

leedsfan757

Hi there,
I wonder if any knowledgeable souls might try to help me with the following please?

I am currently maxing out my DC pension contributions in order to breach the new reduced LIfetime Allowance by 5/4/16, with the aim of applying for Fixed and (possibly) Individual Protection 2016.

I am fortunate to have a military DB pension in payment from age 38 and a company DB scheme due to pay out from age 60 (I'm 53).

Q1: How do I calculate the proportion of annual allowance swallowed up by the increase in 'value' of the non-military DB scheme?

Q2: Given that they only produce the pension statement towards the end of the year for the previous year how is one supposed to factor this in to annual allowance for current year planning?

Q3: Any advice as to the wisdom or otherwise of the lifetime allowance breach plan?

Many thanks for reading this. Kind regards.

zagfles

leedsfan757 wrote: »

Hi there,
I wonder if any knowledgeable souls might try to help me with the following please?

I am currently maxing out my DC pension contributions in order to breach the new reduced LIfetime Allowance by 5/4/16, with the aim of applying for Fixed and (possibly) Individual Protection 2016.

I am fortunate to have a military DB pension in payment from age 38 and a company DB scheme due to pay out from age 60 (I'm 53).

Q1: How do I calculate the proportion of annual allowance swallowed up by the increase in 'value' of the non-military DB scheme?

See http://www.hmrc.gov.uk/tools/pension-allowance/index.htm
There's a linked calculator for DB schemes. Obviously will involve a bit of guesswork eg salary changes.

See also this note about PIPs for this tax year which could make a significant difference to you:

https://www.gov.uk/government/publications/pensions-technical-note-transitional-provisions-for-aligning-pension-input-periods/pensions-technical-note-transitional-provisions-for-aligning-pension-input-periods

Discussion here:
https://forums.moneysavingexpert.com/discussion/5282869

Q2: Given that they only produce the pension statement towards the end of the year for the previous year how is one supposed to factor this in to annual allowance for current year planning?

You try to work it out yourself, as above.

Q3: Any advice as to the wisdom or otherwise of the lifetime allowance breach plan?

Many thanks for reading this. Kind regards.

I'll leave others to comment on that, I'm not rich enough for it to concern me!

leedsfan757

Thank you very much indeed for taking the trouble to post that very helpful reply.

Does anyone else have a view on the wisdom/otherwise of the plan to purposely breach the lifetime allowance please?

Kind regards.

leedsfan757

Any thoughts appreciated please.