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Pensions glossary

Lifetime contribution (pension)

Lifetime pension contributions are the total amount of money people pay into their pension plans over their working life.

From April 6th 2006, if people contribute more than a specified amount (initially £1.5 million) then any income from that pension fund will be taxed at up to 55 per cent.

In the state scheme, lifetime contributions determine how much of the basic state pension and the state second pension (previously called the state earnings related pensions scheme, or Serps) a person can receive when they reach retirement age.


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