Lifetime allowance

Escapar2020

Hi all
Just received my 19/20 statement and want to be sure I'm reading it correctly. It says I've used 42.48% of my LTA and the standard allowance was £1.055m for the tax year.  Does this mean that I've got £448k invested in my pension?
Thanks 

Albermarle

You seem rather confused.
Ignoring the LTA figure to begin with , you should know what is in your pension from the statements you receive or on line access?

Escapar2020

My statement only shows the pension income at npa, not the total invested. It's LGPS if it makes a difference.

coyrls

My guess is it's a DB pension of £22,400 a year, which would be multiplied by 20 to determine the amount of LTA used.  There is no "pot" for a DB pension and so you can't translate the LTA figure back to an investment figure.  The 20x calculation is arbitrary and generous to DB pension holders.

Escapar2020

coyrls said:

My guess is it's a DB pension of £22,400 a year, which would be multiplied by 20 to determine the amount of LTA used.  There is no "pot" for a DB pension and so you can't translate the LTA figure back to an investment figure.  The 20x calculation is arbitrary and generous to DB pension holders.

Thanks, that's clearer!

bigadaj

coyrls said:

My guess is it's a DB pension of £22,400 a year, which would be multiplied by 20 to determine the amount of LTA used.  There is no "pot" for a DB pension and so you can't translate the LTA figure back to an investment figure.  The 20x calculation is arbitrary and generous to DB pension holders.

Yes but of use to those that may also have dc pensions.

jamjar92

Escapar2020 said: the 

coyrls said:

My guess is it's a DB pension of £22,400 a year, which would be multiplied by 20 to determine the amount of LTA used.  There is no "pot" for a DB pension and so you can't translate the LTA figure back to an investment figure.  The 20x calculation is arbitrary and generous to DB pension holders.

Thanks, that's clearer!

You add your LGPS lump sum if you have one and AVC pot if you have any to the figure above, and any other pensions you may have to get  real LTA figure. The LTA figure on the statement is meaningless. My LGPS statement does not show an LTA, probably for this reason.

jamjar92

Of course the LTA figure of £1.055m will increase has you get closer to retirement and I can be changed by the government to what it likes. Just think the difference of the between the figure from above and LTA is the amount you can invest in your AVCs.