cart icon

What is the lifetime allowance?

The lifetime allowance was a limit on how much you can build up in pensions in total over your lifetime. However, the tax charges for going over the lifetime allowance were abolished on 6 April 2023. From April 2024 the lifetime allowance will be abolished entirely.

This means that you'll usually be able to take up to 25% of your pension tax-free, with the rest taxed as an income. You will not pay any extra tax charges for going over the lifetime allowance.

Need more help?

Our UK-based team is ready to answer your questions

If you are an existing client, please send us a secure message using the Inbox feature within your account. This will help us respond with information specific to you.


If you are new to Vanguard, please send us a message with email.

Getting help in difficult circumstances

Please contact us if you’re having financial difficulties, navigating a difficult time in your life, or if your mental wellbeing is affected. This happens to many in these uncertain times. We’re here to help.

Have a complaint?

Find out what you can do
A tally chart using green pencils on a light green background