AA Pension Scheme
Scheme information

Lifetime Allowance

From 6 April 2024, the Lifetime Allowance (LTA) which sets the total value of all the pension savings you can build up before having to pay extra tax, is being abolished. The limit of cash, members can take will remain the same.

From 6 April 2023, the LTA charge has been removed, so there will be no additional tax charge from this date.

The amount of tax-free lump sum you can take is 25% of your total pension savings up to a maximum of 25% of the standard lifetime allowance. Remember, you need to take account of all pension benefits you build up, not just those in the AA Pension Scheme.

If you think you may be affected, it is a good idea to speak to an independent financial advisor. If you do not have your own adviser, you can find one local to you at www.unbiased.co.uk

You can obtain further information about the Annual Allowance and LTA, including available protections from the HMRC website www.gov.uk/tax-on-your-private-pension