The age of 75 is a golden year for retirement savers, as it can be crucial. At this point retirees will reach the cut-off point for the lifetime allowance. Lifetime allowance limits the amount that a person can keep in pensions for the rest of their life without facing a heavy tax burden. Exceeding means the penalty will apply and, therefore, the British may want to be extra careful to maintain their savings. READ MORE: Retired, 80, loses .000 33,000 from fraudulent scam tactics – ‘disappoint’ An exception to the rule is withdrawal funds created before 6 April 2006 – the date on which the lifetime allowance was first introduced. The government-sponsored MoneyHelper website has issued a test warning. He states: “But know that what matters is the value of your pensions at the point where the checks are made. “Therefore, you may need to consider how the value of your pensions may change from now until you wait for the audit to take place. “For example, if you are 55 now, but you do not expect to start making money until you are 60, you need to think about whether the value of your pensions can increase from now on. “If it does, it will deplete more than the life allowance available to you.”
