What is the Lifetime Allowance?
The Lifetime Allowance is the total value of all pension benefits an individual can have without triggering an excess tax charge upon retirement. If the value of an individual’s pension benefits when paid (not including any State Pension benefit or Survivor’s pension) is more than the Lifetime Allowance, the individual will have to pay tax on the excess benefits, at a rate of 25% on excess pension benefits and 55% on any excess lump sum. The Lifetime Allowance is set by the Treasury and is currently £1,073,100 (2020/21).
The Lifetime Allowance covers any pension benefits an individual may have in all tax-registered pension arrangements, not just under the Local Government Pension Scheme (LGPS).
This calculator is intended to provide an approximate indication of your pension benefits, based on your own input and it only calculates your existing LGPS pension benefits and does not take into account any other pension arrangements either active or in payment.
Disclaimer
The assumptions made may not reflect the actual LTA % incurred as this will depend on many factors. If there is any conflict between the information on this website and the Local Government Pension Scheme Regulations the scheme regulations will apply.
No responsibility whatsoever will be assumed by the Rhondda Cynon Taf Pension Fund for any direct or consequential loss, financial or otherwise, damage or inconvenience, or any other obligation or liability incurred by users relying on information contained in this calculator.