This is Money recently reported on tax changes that will affect thousands of employees who may be unaware that their pension funds could be hit hard by tax charges coming in to force this April. 

They say "The extra tax applies if a pension pot amassed over someone's working life exceeds a certain level. Currently this level, known as the 'lifetime allowance', is set at £1.5million.If a pension pot is below this figure at the time you retire you will be able to take your benefits in the normal way, with a tax-free lump sum - typically 25 per cent - and then an income that is taxed according to whether you are a basic or higher-rate taxpayer.
 

But if your pot is more than £1.5million you face a punishing tax charge of 55 per cent on any excess. From the start of the new tax year in April, the lifetime allowance reduces to £1.25million. The move is aimed at cutting the Government's expenditure on pension tax relief, which is running at £35billion a year. And although Revenue & Customs says the reduction will initially affect only 30,000 individuals, this will grow to 360,000 by 2030."

For more information and steps to avoid being caught out, read the full article here.