The government sets a limit on how much money can go into all your pension accounts every year before you have to start paying tax on it. This is known as the annual allowance.
If you go over this allowance you will have to pay tax on the extra, as well as an additional tax charge.
The lifetime allowance is the maximum amount you can build up tax-free across all your pension arrangements, not just your Unilever pension. If you go over this amount, you will have to pay a tax charge of between 25% and 55% on the extra, depending on how you take your money.
The Lifetime Allowance amount is currently £1,073,000. It will stay at this level until at least April 2026.
More about the lifetime allowance
If you have enhanced or fixed protection for the Lifetime Allowance and you join the Plan, you'll lose this protection.
If you start taking money from a defined contribution pension pot, your Annual Allowance amount might reduce.
The reduced allowance is called your Money Purchase Annual Allowance, and is currently £4,000 a year. If the Money Purchase Annual Allowance applies to you and you go over it, you'll have to pay an extra tax charge.
If you have a question about anything else to do with your Unilever pension please email the Unilever Pensions Team.
