How the lifetime allowance has changed over time
The lifetime allowance was first introduced in 2006 at £1.5m, after which it increased each year before being reduced between 2012 and 2016. Various levels of Fixed Protection have been available to investors over these years, protecting the level of the LTA in return for certain restrictions such as no further pension contributions.
Since 2016 the LTA has increased each year by inflation, taking it to the current level of £1,073,100. In the March 2021 Budget however, the Chancellor confirmed it would stay at this level until the end of this parliament in 2026.
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If you haven't added to your pension savings since 5 April 2016 you may still be able to apply for Fixed Protection 2016, which will give you a personal lifetime allowance figure of £1,250,000.
You can check your existing protection using your Government Gateway user ID. If you don't have a user ID, you can create one when you check.
