Lifetime Allowance Question - Have Royal London got it wrong?

Shylock

I am in the process of moving an AJ Bell SIP into Drawdown and withdrawing the maximum Tax Free amount.

As part of the process they are asking if I'd withdrawn any other pre-April 2024 pensin benefits from any other providers and, if so, what percentage of my Lifetime Allowance I had used.

I switched a Royal London pension into Drawdown and took the full Tax Free amount in January 2021.

The Royal London "pot" value was circa £63k and I took 25% Tax Free and have been drawing down the rest monthly.  I've just noticed that the documents Royal London sent to me at the time state that this represents 12.46% of my Lifetime Allowance.

How can that be when the Lifetime Allowance at the time was over £1m?

Barralad77

By my maths it looks to be around 5.8%, so not sure where the 12.5% comes from.

Have you contacted RL to ask?

PensionsStuff

Nothing is jumping out as an obvious typo or something that could have happened either e.g. an extra 0

flaneurs_lobster

Only unlikely thing that comes to mind - don't the pension companies give the figure as a cumulative total - in other words was there another pension put into payment before the RL one (the Allowance to-date would have been supplied to them)?

Shylock

flaneurs_lobster said:

Only unlikely thing that comes to mind - don't the pension companies give the figure as a cumulative total - in other words was there another pension put into payment before the RL one (the Allowance to-date would have been supplied to them)?

No, this was my first and the RL letter is pretty specific saying "Lifetime Allowance used on this

plan: 12.46%"

I'll give them a call.  Just wasn't sure if I was missing something obvious.

Shylock

Barralad77 said:

By my maths it looks to be around 5.8%, so not sure where the 12.5% comes from.

Have you contacted RL to ask?

Will contact them now.  Just wanted to check if I was missing something obvious.