What the pension warnings mean

A warning says what the plan did with something it could not take as given. It never stops the projection.

• Jointly owned pension — Treated as the first person’s, so one person’s drawing age, tax and lump sum allowance apply.
• Contributions with no pot — Workplace contributions are saved only into a defined contribution pot the person owns, else left out.
• Tax-free cash too early — A sum planned before the earliest drawing age’s tax year is not taken, and the warning names that year.
• Tax-free cash cut down — A planned sum is capped at the untouched tax-free share that year, within the allowance left.
• Over the annual allowance — Saving above the allowance and any carried-forward allowance stays in the pot, taxed that year.
• Pension lump sum before the plan — A pension lump sum due in a tax year before the plan starts is not paid, and the warning names that year.
• Contribution to an inherited pension — A contribution planned into a pension inherited from a partner is not paid in.
• Taxable draw while still contributing — A pension draw that is partly taxable counts as taking money flexibly. From then on the money purchase annual allowance applies to the pension contributions still being made. The warning names the year.
• Contribution beyond relief at source — Relief at source covers a personal contribution up to the year’s earnings, or the basic amount if that is more. The warning says how much goes in without it.