FURLOUGH payments have kept many people afloat during the pandemic but the impact of the Job Retention Scheme has had profound effects on a number of other financial areas. New research on this shows many furloughed workers have had to rearrange their retirements.
Tax relief on pensions can be limited by an annual allowance, which is the most a person can save into their pots before any tax is levied.
Currently, the annual allowance is £40,000 but it may be lower than this for people who have flexibly accessed their pensions or who have a high income.
Those on a high income will have a reduced (tapered) annual allowance if their:
threshold income is over £200,000
adjusted income is over £240,000
The government have confirmed they will tackle coronavirus with the budget (Image: EXPRESS)
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Additionally, people will usually pay tax on contributions if their pension pots are worth more than the lifetime allowance, which is currently sitting at £1,073,100.