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bigduckontax, Accountant
Category: Finance
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I have Individual Protection 2014. The value of my accrued

Customer Question

I have Individual Protection 2014. The value of my accrued pension from my previous employer is now above my protected lifetime allowance. My new employer has enrolled me into a pension where I contribute 1% and they contribute 1%. These percentages will increase in April 2018 and April 2019. As the new pension will attract the lifetime allowance tax charge of 55%, should I stay in this pension or opt out?
Submitted: 1 year ago.
Category: Finance
Expert:  bigduckontax replied 1 year ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

I would suggest that you would be better opting out of your new employer's scheme and putting the same amount as the contributions into another form of saving. Such things as ISAs spring to mind. Remember that the first 1K of deposit interest and 5K of dividends are now tax free.

I do hope that you have found my reply of assistance.