Dear [insert name of employee], n.com



0169545Dear [insert name of employee],When you save into your workplace pension, you get tax relief from the government. This can help to boost your pension savings.But there are limits on how much you can save into any pension plans you have and how much you can build up in all of your pensions. It’s worth checking if these apply to you. Annual allowanceThis is a limit on the amount of pension contributions you can make each year before you're taxed. The annual allowance for the 2021/22 tax year is ?40,000.You can pay in up to 100% of your earnings or ?40,000, whichever is lower, and receive tax relief on these contributions. You can also ‘carry forward’ unused annual allowance from the last three tax years.If you haven’t used up your annual allowance for the current or the last three tax years, you may want to pay more into your pension with a single contribution.Lifetime allowanceThis is a limit to the amount you can build up in all of your pension plans when you start taking your pension savings.The lifetime allowance for 2021/22 is ?1,073,100. If you take any of your savings and go over this limit, you may be subject to a lifetime allowance charge.Money purchase annual allowanceIf you're over age 55 and have already taken some of your pension savings, your annual allowance may be restricted to the money purchase annual allowance (MPAA). This means your annual allowance for contributions into your workplace pension would be reduced from ?40, 000 to ?4,000 a year – the MPAA for the 2021/22 tax year.If you think you might be affected by any of these limits, you should speak to a financial adviser. If you don’t already have a financial adviser, you can find one in your area by visiting find-a-financial-adviserAdvisers may charge for their services - though they should agree any fees with you upfront.Keep an eye on your pension savingsDownload Royal London’s mobile app for free to see the contributions paid into your plan, and any tax relief you’ve received. Yours sincerely,[Name Surname][Title][name.surname@]Find out moreThere’s lots more information on your pension hub about how you can benefit from tax relief and any limits that apply.Visit yourplan. to find out more.If you’re not already paying into your workplace pension plan, contact [us / the HR team / insert contact details] for more information.June 2021E P EM 0654 ................
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