New Pension Allowances Explained
Lump Sum Allowance (LSA):
Starting April 2024, the LSA will set a £268,275 limit on tax-free lump sums. This change aims to simplify how individuals access their pension funds.
Lump Sum and Death Benefit Allowance (LSDBA)
The LSDBA introduces a £1,073,100 allowance, impacting both lifetime withdrawals and death benefits. This allowance is crucial for estate planning and maximising your pension’s value to beneficiaries.
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