If your combined funds were valued at over £1,073,100 on 5th April 2016 you can apply for Individual Protection. This gives you a higher allowance of up to £1.25m equal to the value of your combined funds on the 5th April 2016. Contributions can continue.
If you are projected to exceed the Lifetime Allowance in the future based on current contributions, you could reduce or stop your contributions to the pension plan. You can choose to pay some or all of your matched contributions to the RBC UK Savings Plan instead. Contributions to the Savings Plan are subject to tax and National Insurance deductions. RBC’s match is 1 : 0.9 so, if you pay 4%, RBC’s match will be 3.6%.
If you are still projected to exceed the Lifetime Allowance on employer contributions alone, please contact RBC’s HR Advice team to ask for contributions to the pension plan to end. If you can provide evidence of a high level of existing pension savings, RBC will replace its core pension contribution with 7% of your pensionable salary, paid to the RBC UK Savings Plan. You will be subject to tax and National Insurance deductions on this payment.
Allowance
Allowance
Calculation results are only a guide and are not guaranteed, they should not be relied upon as a recommendation or advice that a particular course of action is suitable.
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ilumiti LLP is authorised and regulated by the Financial Conduct Authority - Number 608554. The Financial Conduct Authority does not regulate tax advice.
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