How to avoid being trapped by the lifetime allowance pensions cap

The lifetime allowance on pension savings could catch out those with modest incomes.

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Make sure your stash doesn't go overboard
(Image credit: Credit: Garry Gay / Alamy Stock Photo)

New research shows more than 1.5 million people are on target to exceed the lifetime allowance (LTA) on pension savings. Many of them are unaware that they could be facing expensive extra tax charges as a result. The research, from pension provider Royal London, warns that the LTA will catch out savers earning much more modest incomes than previously thought.

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David Prosser
Business Columnist

David Prosser is a regular MoneyWeek columnist, writing on small business and entrepreneurship, as well as pensions and other forms of tax-efficient savings and investments. David has been a financial journalist for almost 30 years, specialising initially in personal finance, and then in broader business coverage. He has worked for national newspaper groups including The Financial Times, The Guardian and Observer, Express Newspapers and, most recently, The Independent, where he served for more than three years as business editor.