Case Studies

Planning so pension fund not exceed SLA

Client is concerned that pension fund will exceed Standard Lifetime Allowance (& then subject to a tax charge)

Information

  • Stan is 50nb
  • He is looking to retire at age 60 (in 10 years)
  • He has a Money Purchase pension fund currently valued at £600,000
  • His company will be paying a pension contribution equal to the Annual Allowance of £40,000 per annum.
  • Stan income means he is not impacted by the ‘tapering’ of the Annual Allowance
  • He expects his fund growth to be 5%a.c.

Assumptions 

  • SLA to increase by 2% each year

Solution = Pension Funding calculator 

 

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