I set life time protection on my pension at £1.25m. I then worked a 3 day week to pay less tax as I couldn't pay into the fund.
The reality is HM Gov see final salary schemes as worth 20 x the annual pension. So a £20k pension is £400k of your pension allowance. But if you have £400k in a pension pot this is valued by the Gov as £400k. This size of pot won't get you an annuity anywhere near £20k.
My wife though has a terrible pension position as she was a stay at home Mum & a part time nurse. We add the max you can in to her Nest as a non working person but with the 6 years stolen by the Gov she has really lost out.
Pete, HM Gov gives you tax relief on any pension payment so you don't pay tax on the input but they tax the pension which seems fair to me.
