"The excepted group life schemes can mitigate the issue as it’s subject to life insurance legislation so is not tested against the lifetime allowance. Hence it’s worth employers speaking with professional advisers to review their existing group scheme benefits especially if they wish to keep their senior staff happy."
Tim Morris, independent financial adviser at Russell & Co believes that the issue with the lifetime allowance is something employers and trustees have a duty of care to highlight.
Mr Morris said: "I'm surprised by the number of companies that haven't taken action, yet having previously worked for a large financial services corporation for many years I've seen many examples of inaction.
"They tend to stay at arms length and recommend their employees take 'independent financial advice', yet don't signpost them to any financial advisers."
amy.austin@ft.com
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