Entering an escalation on the LTA

Q. I would like to show an escalation on the LTA from 2018 onwards how do I do that?

 

A. You can set your LTA escalation in the preferences section of Voyant (cog wheel in the upper left toolbar) Preferences > Plan or system Preferences  > Default Inflation / Growth Rates > Lifetime Allowance (LTA) Escalation %.

In the software, the LTA on pensions is currently set to £1 million and remains fixed at this level until 2018, regardless of the level of escalation set in Preferences.

Although current legislation does say the LTA will escalate by CPI from 2018, we have given users the option to decide which rate they wish to escalate the LTA by from 2018, as advisers have differing opinions on whether the LTA will actually be escalated or not. Some advisers are sceptical and choose to show no escalation at all, given that in recent years the LTA has been decreased.