Pension: Warning as more Britons at risk of 55 percent tax charge on savings | Personal Finance | Finance

It will also be tested on a person’s 75th birthday, whether they are taking any pension benefits or not.

The value of the total amount is what is tested, not just the lump sum or income amount paid to an individual.

When a test takes place at 75, it will consider the value of any untouched pensions or pensions which were previously moved into drawdown.

An HM Treasury spokesperson previously told Express.co.uk: “Maintaining the lifetime allowance at its current level allows savers to continue to make significant amounts of pension savings tax-free.

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