Over 1 million UK workers could face unexpected pensions tax bill

Pedro Gonçalves
clock • 2 min read

Over one million workers are at risk of breaching the pensions lifetime allowance limit, triggering hefty taxes, research from the mutual insurer Royal London shows. According to the research, just under 300,000 non-retired people already have pension pots worth more than the current £1.03 million lifetime allowance limit. An estimated 1.25 million more workers are expected to join them by the time they retire. Exceeding the lifetime allowance results in heavy tax charges when accessing your pension. Pensioners are currently changed up to 55% of their pension for any amount that excee...

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