Pensions and lifetime planning—Part 1

Produced in partnership with John Hayward, Pensions Author, and Wyn Derbyshire of Gunnercooke LLP

Practice notes

Pensions and lifetime planning—Part 1

Produced in partnership with John Hayward, Pensions Author, and Wyn Derbyshire of Gunnercooke LLP

Practice notes

Membership of an occupational or Personal pension scheme affords the opportunity to utilise the tax reliefs available during an individual’s working life to save for a pension on retirement. This Practice Note looks in broad terms at the main features where opportunities exist for Pension scheme members to maximize the tax reliefs available to enhance their retirement benefits. These features include pensionable earnings, personal contributions and their impact on the annual allowance. The Practice Note also mentions, where appropriate, certain traps to avoid.

It should be noted that previous commentaries on these topics would have included references to the lifetime allowance charge and the lifetime allowance; the lifetime allowance charge was abolished with effect on and from 6 April 2023 and the lifetime allowance itself was abolished with effect on and from 6 April 2024. Further information can be found at PTM164100 - Information and administration: overview of the information requirements in respect of the lifetime allowance.

Pensionable earnings

For both employers and individuals to obtain tax relief on their contributions

Jurisdiction(s):

United Kingdom

Key definition:

Members definition

What does Members mean?

In relation to an occupational pension scheme, the term 'member' is defined in PA 1995, s 124 as any active, deferred, pensioner or pension credit member of the scheme. The s 67 regime therefore protects all types of members.

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