Sharon Mattheus

For pensions, the Lifetime Allowance (LTA) is the overall limit of pension funds a member can accrue during their lifetime, and which will benefit from favourable tax treatment before an LTA tax charge applies.

As the COP26 summit gets underway, the world’s attention is focussed on what action we must all take to secure the planet for future generations.

A growing number of investors are seeking ways to invest tax-efficiently in places other than their pensions and ISAs, usually because they have already fully used their ISA allowances, and significant pension contributions have compounded over the years.

A growing number of investors are seeking ways to invest tax-efficiently other than through their pensions and Individual Savings Accounts (ISA). The reason being that those investors have fully used their ISA allowances and have significant pension contributions have compounded over the years. Pensions have a tax-efficient lifetime allowance, above which clients question why they should keep adding if they are going to get taxed later at a higher rate!

Covid savers should be making the most of their pensions allowances, says Sharon Mattheus of Lovewell Blake Financial Planning.