Make sure your pension savings don't breach the lifetime allowance

Don’t forget the lifetime allowance when reviewing your pension planning – breaching it could prove very costly, says David Prosser.

Jar full of money
(Image credit: © Alamy)

For many people, January is the month to get their personal finances organised, particularly if they have to file their self-assessment tax returns by the end of the month. However, one job that often gets overlooked – even though it could lead to a future tax headache – is a review of whether you have a problem with the lifetime allowance on pension savings.

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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.