BAAPS Support members can often have complex pension and retirement plans, with NHS and private pensions both needing consideration. There is also a risk of breaching the lifetime allowance and incurring significant tax liabilities, (up to 55% above the permitted limit), therefore careful planning and ongoing monitoring is required.

Alternative ‘tax wrappers’ could also be considered to deliver tax efficient income, capital in retirement, or to meet specific life goals. Pension plans are just one form of tax wrapper and further solutions do exist. These solutions can utilise additional tax reliefs and maximise a client’s annual allowances. Naturally, such reliefs can be doubled for partners / married couples, creating potentially significant levels of tax efficient income and capital.

Cashflow modelling is key to understanding a client’s current position and how this could progress over time based on current earnings / pension contributions. Initially however, an assessment should be made on the client’s current position and how much of the Lifetime Allowance has been utilised so far.

Please refer to the page ‘Pension Lifetime Allowance Report’ for further information: