Receiving a pension savings statement
Pension providers are required to send pension savings statements to customers to help them keep track of their pension savings. Customers who have a money purchase arrangement will get a pension savings statement by 6 October 2023 if:
- they’ve been an active member of a pension scheme for all or part of the 2022/23 tax year, and
- their total pension input amount to the scheme is more than £40,000 for 2022/23, or
- the scheme administrator believes the individual has flexibly accessed a money purchase arrangement and their pension input amount under the scheme is more than £4,000 in 2022/23.
Pension savings statements will help your clients to determine whether they are likely to suffer an annual allowance tax charge, or whether they can carry forward any unused allowances from the previous three years (so long as they haven’t flexibly accessed any benefits) to negate or reduce a charge. You can find out more about the annual allowance, the annual allowance charge, carry forward and pension savings statements in our Annual Allowance guide.
Paying an annual alllowance charge using scheme pays.
If any of your clients do have a charge to pay, they may seek your guidance on whether they can ask their pension scheme to pay it from their pension funds – you can get all the technical details in our Scheme pays guide.
Pensions Technical Services
October 2023