Live time allowance replaced by lump sum allowance

[Wullie10]

This is all new to me but I know someone who took early retirement recently and they have just got a letter the LTA is replaced by a lump sum allowance and a death benefit allowance. It then gives figures but explains nothing. Probably a large tax bill on its way ? I think the stress of pensions will kill us before we can enjoy them

[Wullie10]

I am writing regards to benefit from your scheme. As of 6th April 2024 the government replaced the lifetime allowance with the Lump Sum allowance LSA and Death benefit allowance LSDBA.
Unfortunately due to timing of the legislation and when your case was processed which resulted in the LTA rather than the LSA and the LSDBA.
Therefore to confirm how much you LSA and LSDBA your retirement used up

LSA. £34000
LSDBA £34000
( Just made up figures close to the letter . In monerty terms and not percentages which I think is odd as surely you need a percentage figure )

[RobertT]

The Lump Sum Allowance and the Lump Sum & Death Benefit Allowance came into force in April 2024, and are just a re-working of the previous Lifetime Allowance which was abolished.

It's unlikely to affect you unless you take a total of £268,275 in tax free cash from your pension/s, or have total pension savings of over £1,073,100.

Here's some in depth info which you can quite easily find on Google:
https://adviser.royallondon.com/technic ... pril-2024/

[Wullie10]

Top man yet again thank you

[Wullie10]

Live time allowance shocking. I need to get on the laptop. Squinting at a mobile and its predictive text. Terrible. Of course its LIFE TIME ALLOWANCE