What’s fixed protection 2016?


Fixed protection 2016 fixes an individual’s lifetime allowance to protect their pension savings at £1.25m after 5 April 2016 when the lifetime allowance dropped from £1.25m to £1m. A condition of fixed protection 2016 is that in most cases you can’t pay in to a pension pot, except in limited circumstances. If you do, you’ll:

  • lose your fixed protection 2016 (you won’t if you opt out within 30 days of being automatically enrolled)
  • pay tax on any pension savings above the lifetime allowance when you take your benefits. Whether you can apply for protection also depends on any protection you already have.



The following HM Revenue & Customs link gives more information on fixed protection. It also gives information on the other protection introduced on 6 April 2016 – individual protection 2016: www.gov.uk/guidance/pension-schemes-protect-your-lifetime-allowance.

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