Actively managing your pension savings provides multiple benefits, not least taking advantage of tax planning opportunities that can reduce your long-term tax exposure, the income you enjoy during your retirement, and the financial freedoms at your disposal.
Many people ignore pension taxation until the time comes to draw on their lifetime savings, retirement investments and pension products – with potentially disastrous consequences.
With the somewhat sudden pension taxation reforms introduced in the March 2023 budget, it is essential all pension savers, particularly those with funds valued at £800,000 or above or with pension assets that would have previously been exposed to the Lifetime Allowance (LTA), make timely, informed decisions about what this means for them.
Download your free guide today and understand what the changes to the Lifetime Allowance mean for you.
Although the headline announcements around removing the LTA have been well-publicised, numerous other factors may be unclear, such as:
- Ongoing restrictions on lump sum drawdowns, with 25% maximum tax-free thresholds calculated against the previous LTA value.
- Additional (unaffected) tax liabilities linked with larger lump sum withdrawals.
- Conceivable future exposure to inheritance tax liabilities, with policies anticipated to incorporate pension wealth under the full scope of UK inheritance tax calculations.
- Increases to the annual allowance, hampered by high-income tapering, reducing the annual allowance by 50% of every £2 earned above the individual’s adjusted allowance.
It is also important to clarify that the removal of the LTA has yet to be formalised into tax law, and technical modifications are always a possibility when a tax policy transition has not been verified through an official Finance Bill.
Further, the prospect of the LTA being reinstated in just a few short months, should the UK general election in the next year result in a change in government, means time is of the essence for pension holders who wish to maximise their tax efficiencies, both now and into retirement.
Our more detailed guide runs through these and other caveats and factors we believe all pension fund holders should be aware of.
Download your copy now for further insights.
Any tax changes, particularly those that have yet to be thoroughly debated and consulted on in advance, are complex. Knowing what the removal of the LTA means in real terms, how it affects your income, retirement wealth and pension access, and planning accordingly, is important.
Chase Buchanan’s complimentary guide, created by our LTA specialist Malcolm McDowell, is an informative resource to run through the immediate impacts, applicable thresholds and pension caps, and the varied tax obligations that may arise when you choose to access your pension, begin drawing benefits, or pass your retirement wealth to your beneficiaries.
Our pension funds and retirement wealth can make a marked difference to our future comfort and income, and although these sweeping changes introduce an element of uncertainty, a capable pensions specialist can provide assurances, independent guidance and support with structuring your pensions for security, stability and tax-efficiency.
- Changes to the Lifetime Allowance
- Adjusted pension contribution allowances
- Higher-income tapered allowances
- Limitations on access to lump sum pension drawdowns
- The likelihood of further pension tax amendments
- Complexities and caveats to be aware of
About Chase Buchanan
Chase Buchanan is a market-leading wealth management expert, supporting global clients from our offices in Portugal, Cyprus, Spain, Canada, Belgium, the USA, the Isle of Man and our UK Administration Centre.
We have years of experience working with expats throughout Europe and the wider world, and our international offices position us ideally to offer current, accurate and reliable financial recommendations.
Our free Guide resources are designed to provide the most up to date information available at the time of publication. Should you require more tailored advice or further detail on any of the information within your Guide, please contact us at your convenience.
Download LTA Guide
Lifetime Allowance Guide (LTA Advice Guide).
For the latest LTA advice on how the 2023 Lifetime Allowance amendments may affect your retirement plan, then an initial conversation with Malcolm McDowell is a positive place to start or download the free Lifetime Allowance Guide.
Trusted advice made simple
Current Download Guides
Expat Tax Guide - Belgium
With a unique blend of geography, cultures, and an outstanding quality of living, Belgium remains one of the most appealing destinations for families, professionals, and retirees alike.
Expat Tax Guide - Cyprus
Cyprus is a multi-faceted country, offering one of the finest climates in the Mediterranean as well as multiple employment opportunities, a safe and relaxed culture popular with families, and a peaceful way of life for retirees.
Expat Tax Guide - France
France remains one of the most popular countries of choice, with UK nationals seeking to relocate or retire abroad.
Expat Tax Guide - Portugal
Portugal offers many benefits to UK citizens looking for a new life experience, employment opportunities, warmer retirement climes or a new culture to enjoy.
Expat Tax Guide - Spain
As more UK nationals look overseas for lucrative work opportunities and a relaxed retirement, Spain remains one of the most popular destinations. The scenery, climate, and pace of life are all compelling reasons to relocate.
Residency Guide - Cyprus
Hundreds of thousands of British nationals enjoy life overseas, and it is essential to understand how your residency status will affect your tax liabilities over the long term.
Residency Guide - France
From January 2021, the UK became an independent nation and is no longer part of the EU. British nationals living in France continue to cope with concerns amid much uncertainty about what the future will hold, with prospective expats unclear about what may have changed.
Residency Guide - Portugal
While the UK has not been part of the EU since early 2021, many expats still feel a great deal of uncertainty about whether the prospect of relocating abroad remains viable and how their residency or tax position may change in the future.
Residency Guide - Spain
For the millions of UK nationals living, working and studying in Spain, the UK’s departure from the EU in early 2021 gave rise to uncertainty and concern about how their position may change in terms of residency, taxation, and the right to relocate.
Irish Pension Transfers
Retirement income and pensions are often among the most valuable assets we hold, they can dictate our future lifestyle, our comfort and our enjoyment throughout our retirement years.
International Pension Transfers
Planning for retirement overseas can be such an exciting time with the opportunities to relax and travel the world, but for many people planning to spend their retirement abroad, understanding the rules and complexities of international pension transfers can be challenging.
Guide to Retiring in the EU
With around half a million UK nationals retiring in the EU in the post-Brexit world, understanding the security of future pension income, taxation rates, and possibilities for cross border transfers is a crucial requirement.
Education Fee Planning
If you are considering different education options for yourself or your children, download our Guide to Private Education Planning to find out how you can manage your finances to ensure you get the education you want.
Health, Income & Life Protection
While you accumulate your wealth, it's essential to ensure you properly protect it. Your health and life is vital to your earnings potential and the future of your family.
Investment Scams Guide
In a world where financial fraud and investment scams are rife, every investor needs to understand the potential signs something is not as it should be.
Offshore Investment
There are many financial benefits to being an expat and a whole host of offshore wealth management solutions that can help secure your financial well-being. Our guide below helps explore different options you could take in offshore investment.
Retirement Planning
If you're thinking about your retirement plan, it's likely that you are considering whether a pension is the right thing to invest in.
SIPPs v ROPS
SIPPs are personal pension wrappers that offer investors more freedom of choice than traditional personal pensions.