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Aegon in lifetime allowance blunder

Aegon has apologised after mistakenly sending out benefit statements telling customers the lifetime allowance for pension saving is still £1.8m.

The lifetime allowance was cut from £1.8m to £1.5m from April 6, this year.

However, an Aegon benefits statement dated May 14, 2012, seen by Money Marketing, says: “The benefits you receive may be subject to a lifetime allowance charge if they exceed the amount of the lifetime allowance available to you when you take your benefits.

“Excess benefits taken as pension will be taxed at 25 per cent (in addition to the income tax charge payable on your pension) and any excess benefits taken as a lump sum will be taxed at 55 per cent.

“The current lifetime allowance is £1.8m.”

Syndaxi Chartered Financial Planners managing director Robert Reid says: “This is incredibly sloppy but when a company like Aegon loses the quantity and quality of technical staff they have, mistakes such as this are inevitable.”

The provider was unable to confirm how many customers had received incorrect benefit statements. An Aegon spokesman says: “We acknowledge there has been an error and apologise for any confusion. This has now been rectified.”

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