Planning so pension fund not exceed SLA
Client is concerned that pension fund will exceed Standard Lifetime Allowance (& then subject to a tax charge)
- 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.
- SLA to increase by 2% each year
Solution = Pension Funding calculator