Consumer > Employees > Annual and lifetime allowances
Annual and lifetime allowances
Annual allowance
There's a limit to the amount you can invest in pension plans every year before you are taxed on your contributions. It's set by the Government and it's called the annual allowance. The table below shows the annual allowance for the tax years 2012/13 and 2013/14.
| Tax year | Annual allowance |
|---|---|
| 2012/13 | £50,000 |
| 2013/14 | £50,000 |
Lifetime allowance
There's a limit to the amount you can have built up in any pension plan when you start taking your retirement benefits. It's set by the Government and it's called the lifetime allowance. The lifetime allowance for 2012/13 is £1,500,000.
