To LTA or not to LTA, that is the question

jim8888

From my experience I'm now hitting up against the LTA and kind of wish I'd maybe put more into ISA's 10 years ago....but I was more than happy getting the tax relief on the pensions at that time. 
Thanks to these boards I only realised yesterday that the 55% will only apply to any excess above the LTA if I want it as a lump sum. Otherwise it will be taxed at 25%, so I'm a bit more relaxed about exceeding the limit if the markets do well over the next few years. 

Albermarle

If you are a 40% taxpayer in retirement , then you will also pay 55% even ( LTA + income tax ) if you take it as income .
If you are a 20% taxpayer you will lose 40% if you take it as income , so less of an issue, especially if you gained 40% tax relief on the way in .