Why do I exceed the Annual Allowance if I elect the variable pension option
For the purpose of measuring your pensions savings, HMRC rules mean that we need to look at the difference between your initial pension option and your accrued pension at the last 5 April. The uplift to your pension is therefore taken into account, for this reason you should consider whether there is an Annual Allowance tax charge to pay and whether this is the best option to take. We would suggest you seek suitable independent financial advice.