We were appointed by an executive who faced the prospect of a lifetime allowance (LTA) charge because her benefits at normal retirement date would exceed the LTA.
We outlined that she would be able to reduce the LTA charge in a number of ways:
- by drawing a higher pensions commencement lump sum
- or by retiring early
- or by drawing benefits early and continuing to work
These options did not increase the employer’s costs but reduced the LTA charge for the executive.