Kate Smith: The advice implications of changes to the MPAA

Prioritise order clients access savings

clock • 5 min read

The proposed reduction in the Money Purchase Annual Allowance alters the dynamic of the pension freedoms and has implications for retirement planning. Kate Smith takes a closer look

Philip Hammond's Autumn Statement was thankfully relatively quiet in terms of pensions news. After a number of blockbuster announcements in recent years, the general consensus from the pensions and advice industry was that we could all do with a little time to let recent changes bed-in. That said, the change to the snappily titled Money Purchase Annual Allowance (MPAA) probably made advisers' ears prick up as it alters the dynamic of the pension freedoms and has implications for retirement planning. The MPAA will be reduced from £10,000 to £4,000 a year next April. This means that, on...

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