Top 10 tips: pension tax advantages and pitfalls

3 Feb 2022

Do you know your lifetime allowance from the restrictions of the money purchase annual allowance for pensions? Adrian Lowery, personal finance expert at Bestinvest, and Louise Higham, chartered financial planner at Tilney, Smith & Williamson explain the tax intricacies

The tax treatment of pensions makes them both an attractive long-term savings option, and a complicated one.

‘It pays to know about how pensions are treated by the taxman right through the saving journey and beyond retirement,’ says Lowery. ‘Not least because if the UK’s public finances don’t improve then some of the tax reliefs may well be diluted in the future – just as personal allowances have been eroded and frozen in recent years.’

Here are 10 tips to make sure you are managing the tax implications of your personal pensions.

1. Make the most of pension tax reliefs