I've never really worried about the pensions lifetime allowance until now. £1M in pensions? Haha, that would be a nice problem to have, right?
But - when I did my net worth spreadsheet update the other day, I did a calculation based on my current pension value. If the stock market continues to return 7% above inflation (like it historically has), and the lifetime allowance goes up with inflation, then I'll already be at 93% or so of the LTA by the time I'm able to start drawing it down - and that's without making any more contributions!
It's pretty mind-blowing what compounding can do.
So, I'm thinking that perhaps I don't want to be quite so aggressive with my pension contributions as I have been up to now, and divert a bit more money to ISAs instead. This also helps with making money available for the period between FIRE and pension accessibility (this being too low is the only reason I don't consider myself properly FI yet). I hate to miss out on that sweet 40% tax relief, though :(
Of course, a lot can change in 20 years or so. Some people think the lifetime allowance will be scrapped eventually. We might not get 7% returns in the future, especially as the market is quite expensive now. And if I end up breaching the limit, I can always de-risk a bit by putting some pension money into bonds. But I still think this is a calculation that is worth running...