Personal Pension Contributions

george4064

TN1984 wrote: »

When you say the projections exceed the LTA, is that the LTA as it is now or the LTA indexed with inflation between now and when you retire? As it is currently increasing by inflation each April, it will be a lot higher when you hit retirement (subject as always to further legislation changes).

Either way, I really would not worry about it for the foreseeable future, and would just keep contributing as much as you can afford. You can always revisit it later on when you've built up a more significant fund and review the position then if necessary, but so much can change between now and then, both legislation wise and personally, e.g. if your circumstances change and you can't contribute for a while or growth is not as high as expected.

It's also worth remembering it is not a cliff edge, you only pay a charge on the excess, and even then only when you crystallise benefits with 0% LTA remaining, which is likely to be even further into retirement.

Good point, I have not been indexing the LTA with inflation to my expected retirement age. Thanks for pointing out.