Pension tax allowance changes from April 2024

18 April 2024

Last year, the Government announced three changes which could have an impact on the taxable element of your pension benefits: 

  1. To increase the Annual Allowance. 

  2. To abolish the Lifetime Allowance. 

  3. To set a limit on the amount of tax-free cash sum members can take when they retire. 

What does this mean if I’m still paying into my RWE Group pension? 

The Annual Allowance, the most that can be put into your pension in any one tax year without paying a tax charge, has increased for everyone. It means the Government has increased the allowance you can save towards your retirement. 

If you exceed your Annual Allowance while an active member of the RWE Group, we will send you a Pension Savings Statement in autumn to highlight how much you have exceeded and to confirm the next steps. 

Does this affect my tax-free cash sum at retirement? 

For most people the abolition of the Lifetime Allowance and introduction of new cash sum allowances is unlikely to have an impact. 

For more detailed information on these changes please log into LIFETRACK where you will find a pop up message with a link to a document providing details of the changes to the Lifetime Allowance. 

If you are intending to take your pension, you can run quotations for your RWE Group benefits from your online account on LIFETRACK. 

If you have put in place protection to take a higher amount of tax-free cash, this should continue to be available, but for more information please see the detailed document on LIFETRACK and/or check with your independent financial adviser.