Pension Lifetime Allowance

Lifetime Allowance

There is a Lifetime Allowance for the amount you can withdraw from your pension over your lifetime. If you withdraw more than this it will trigger a tax charge.

The Lifetime Allowance is £1,073,100 n the tax year 2023/24.

You should be aware:

  • This includes both lump sums and pension payments
  • this one limit applies to payment from all of your pensions apart from the State Pension
  • You can check to see whether this impacts you by looking at the HMRC website. Use the HMRC Lifetime Allowance checker 
  • From 6 April 2023, the amount of tax-free lump sum you can take is 25% of your pension pot, up to a maximum of 25% of the 2022-23 standard lifetime allowance (£268,275).
  • If you hold certain lifetime allowance protections, the amount of tax-free lump sum you can take may be higher than £268,275.

If you are evaluating your pension, we strongly advise that you seek professional advice from a fully qualified and regulated Independent Financial Advisor.

Pension decisions are usually a major financial decision that requires the appropriate level of advice to make the right choice.

In contrast, mistakes can be costly. To arrange for a no obligations, initial free  consultation click here

Want to discuss your Lifetime Allowance?​

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Our website offers information about investing and saving, but not personal advice. If you’re not sure which investments are right for you, please request advice, for example from our financial advisers. If you decide to invest,  remember that investments can go up and down in value, so you could get back less than you put in.

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