Lifetime Allowance is a limit on the amount of pension that can be drawn from pension schemes throughout your lifetime.
This Lifetime allowance was introduced in 2006 at £1.5million and was increased each year to 2010 when it reached a level of £1.8 million.
Since then a number of changes to the legislation have reduced this, to £1.5million, then £1.25million and now £1million.
Today the HM Treasury has confirmed that the lifetime allowance will increase in line with CPI from April 2018.
The new lifetime allowance in April 2018 will be £1,029,000
This blog is not intended to replace individual financial advice, if you would like a conversation regarding this, please do not hesitate to call one of the team.