Is there a limit on how much pension I can have?

There are complicated rules about how much pension you can get from a salary related scheme. If you think you may come close to being able to get two-thirds of your final salary, you will need to check these out. Few of us are lucky enough to be in that situation!

The government has also introduced a cap on the size of a pension fund people can build up tax free. This has been set at £1.5 million. Anything above this will be taxed quite steeply.

Any pension you are due from a salary related scheme also counts against this limit - and there is a formula for working out how much such a pensions promise contributes to the cash limit.

If you think you are likely to come up against this limit, there are ways of protecting your pension for the first few years of the new limit.

If you are lucky enough to be in this position then you should take specialist advice. There is more information on the Inland Revenue site but do not expect too much sympathy from the rest of us!