The future Lifetime Allowance (LTA) on pensions in the UK is escalated based on the Consumer Price Index (CPI).
You can set your LTA escalation in the preferences section of Voyant (cog wheel in the upper left toolbar) Preferences > Plan Preferences > Default Inflation / Growth Rates > CPI %.
What happened to the former LTA Escalation preference?
If you are a longtime user of Voyant Adviser you might note that previous releases of software included a separate preference for Lifetime Allowance (LTA) Escalation %. This preference was used to manage what at the time was the hypothetical future escalation of the lifetime allowance.
Following UK Government legislation we changed the escalation of LTA. As a result, the software has been configured to reference the CPI assumption and the LTA Escalation % preference has been removed.
Following the March 2021 budget, the LTA is fixed at £1 073 100 through to 2025. From this date the lifetime allowance is to be escalated annually based on CPI.
Voyant will continue to implement the announced annual lifetime allowance and will revisit the related preferences if any future changes in policy are announced.
What if I was using the old preference in my client case?
If you edited the former Lifetime Allowance (LTA) Escalation % preference in any of your older client cases, these cases will retain this preference. Newer cases will not show this preference and will use instead the CPI preference to escalate the future Lifetime Allowance.
Plan Preferences vs. System Preferences
Changes to this setting on the mirror Default Inflation / Growth Rates panel in System Preferences, on the left side of the screen, will be used only going forward, as you create new client cases. System Preferences are used as a template only for new client cases. Changes to System Preferences will not retroactively affect your existing client cases.
If you want to change this preference in any existing client cases, you will need to open and edit them individually, in each case's Plan Preferences.