HM Revenue & Customs (HMRC) have established allowances within which pension savings achieve tax favourable treatment in the UK. For more details, please explore the following factsheets:
HMRC impose a limit upon the maximum amount of tax-free cash you are able to receive upon retirement.
This is broadly calculated as 25% of the value of your benefits for Lifetime Allowance purposes.
From 6 April 2023, whilst the LTA has been abolished for the purposes of determining any limit above which you become subject to an LTA tax charge, the allowance currently remains in place for determining the amount of tax free cash permitted to be paid at retirement.
The latest standard LTA was set at £1,073,100 meaning that the maximum amount of tax-free cash which is permitted to be paid (2023/24) equates to 25% of this amount (£268,275).
Individuals with an existing Lifetime Allowance protection certificate filed with HMRC may be permitted a higher level of tax-free cash
The School is unable to provide you with any financial advice as legislation requires that this is provided by a registered financial adviser.
The School have therefore worked in conjunction with a number of other London based higher education institutions to create a preferred suppliers list of four independent financial advisory firms, whom the London Pensions Consortium believe have demonstrated a strong understanding of the higher education pension arrangements and the issues likely to be faced by their employees.
All four selected providers are qualified to provide independent financial advice regarding both your membership of the School’s pension arrangements and more general advice regarding your wider financial planning, should this be of use to you.
Both Insight and Chadwicks will provide you with an initial discussion free of charge in order to understand your requirements. Any fees for further advice will then be agreed with you in advance before any subsequent work is performed. Both Clarity and Mercers will agree an initial consultation fee with you prior to arranging a meeting, with the fee being dependent upon your requirements from the initial consultation.
Please see below for contact details and a brief overview of each of the appointed advisers: