I have various personal money purchase pensions with a current value of approx £780,000. No occupational / defined benefit pensions.
I currently earn £90000 and my employer contributes 10% of salary into my pension. No salary uplift if pension contributions not made. My current job is maternity cover so it could end any time, and I have no visibility on whether I will get another job and if I do what the salary will be or whether I will get any employer pension contributions.
I am aged 43, 44 in May, and expect to take my pension at the earliest opportunity when I am 55 in 11 years.
I am pondering whether I should apply for Fixed Protection 2016 which I understand will freeze my lifetime allowance at £1.25m if I dont make any further pension contributions after this month.
A key question here is of course what real annual average investment return it is reasonable to assume over 11 years for broad based medium risk collective funds mostly invested in equities. I note that the government has indicated that the lower lifetime limit of £1m will be indexed to inflation from 2018.
Any thoughts gratefully received. I appreciate I will need formal professional advice before coming to a final decision.
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