Money purchase annual allowance worth £8,500 a year less than in 2015

Just Group calculations show the MPAA should have surpassed £12,000

Holly Roach
clock • 2 min read

The money purchase annual allowance (MPAA) is worth £8,480 a year less in real terms than in 2015 when it was first introduced, analysis by Just Group finds.

The firm said adjusted for rising prices, the MPAA "should have reached £12,480", but was cut and frozen at £4,000, "subjecting thousands more pensions savers each year to onerous rules". The MPAA was £10,000 when it was first introduced eight years ago, and was cut to £4,000 in 2017 where it has remained frozen. Just Group said with inflation "picking up sharply" in recent months, the MPAA in real terms is more than £8,000 less than when it came into force. The firm noted: "More than two million people have taken a flexible payment from a pension since 2015 and thousands still sav...

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