From April 6, there won't be a limit on how much you can save in your pension before you start getting taxed
A big change to the way pensions are taxed is coming next month, and it's one of the biggest changes in 20 years. This will affect everyone who is taking money out for their retirement.
Treasury minister Nigel Huddleston said the changes made by the Bill will "encourage people to stay in work and utilise their expertise for longer". The Office for Budget Responsibility thinks that getting rid of the lifetime allowance will keep 15,000 workers every year. Starting next week, the lifetime allowance will be replaced by two new taxes on lump sum withdrawals, which could catch some pensioners out.
The LSDBA lets you transfer up to £1,073,100 of your leftover pension allowance to someone else when you die, without them having to pay tax on it. But this amount will be less if you've already taken out lump sums during your life. Even though things aren't very clear, the chartered Financial Advice and Services organisation has some tips for worried pensioners.
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