As the Lifetime Allowance and the Annual Allowance have not kept pace with inflation over the last fifteen years, more and more people are being caught out. It's quite hard to keep tabs on these allowances, especially in Defined Benefit schemes where a pay raise can significantly increase your projected notional "contributions".
So, what is the Lifetime Allowance? Currently, it's £1,073,100 for money purchase pensions (2020/21), so you can see why over a long period of time, taking into account investment growth, more and more people are reaching the limit.
Find out more about the allowances in our FAQ's section at the bottom of the page.