For those individuals with either larger pension funds or those planning to make significant pension contributions, careful advance planning with your adviser is essential.

HMRC sets limits for both the size of total annual payments into a pension (annual allowance), and also the total size of the pension fund when you start to draw any benefits (lifetime allowance), and the tax penalties for exceeding them can be severe. These limits apply not only to SIPPs but to all pension plans.

Since 22 April 2009 there have been further tax charges applicable to some contributions made by those with income in excess of £130,000 per annum. If you believe this may have an impact on you, contact your financial advicer prior to making contributions to any pension arrangement.

Ask your adviser how the Suffolk Life MasterSIPP can help you maximise the tax efficiency from your retirement plans.