Forget IHT, This is the Tax to Worry About

Editor's Views: Most people worry about IHT when they should fear a big pension tax bill, why dividends may be overrated and lessons from a year since the market crash

Holly Black 26 February, 2021 | 10:31AM

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Many savers might scoff at the Pension Lifetime Allowance and dismiss it as a problem for rich people. Indeed, the idea of the £1 million limit does seem like something that’s not really for most of us to worry about. Yet, given the length of time we spend saving for retirement and the help we get from our workplace, you might be surprised when you do some sums.

It’s strange to me that so many people worry so much about Inheritance Tax, something that actually only around 5% of estates end up paying, when the lifetime allowance is looming and far more likely to affect you.

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About Author

Holly Black  is Senior Editor, Morningstar.co.uk

 

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