Spring Budget 23: MPAA limit increase to £10,000 well received  

Positive news for savers and younger advisers coming through the ranks

Hope William-Smith
clock • 3 min read

A long-awaited reform of the money purchase annual allowance (MPAA) announced in today’s (15 March) Spring Budget has been well-received when it comes to client impact.

The MPAA is set to more than double from £4,000 to £10,000 from next month in line with continued calls from the pensions industry. Standard Life has called the £6,000 jump "one of the few areas of the pension system where there was near universal agreement on the need for change". Managing director for customer Dean Butler said: "At a time when the government is hoping to encourage retirees back to work, this is arguably the biggest lever they could have pulled from a pensions perspective and upping the allowance to £10,000 will provide some incentive to return." True Potential he...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Mind the (widening) gender pensions gap

Mind the (widening) gender pensions gap

‘A terrifying outcome for women in retirement’

Caitlin Southall
clock 14 January 2026 • 4 min read
Pensions body warns MPs on salary sacrifice change impact

Pensions body warns MPs on salary sacrifice change impact

Employers and employees will ‘face higher costs’ from salary sacrifice changes

Jasmine Urquhart
clock 14 January 2026 • 2 min read
Many savers fear smaller pension pots after salary sacrifice reforms

Many savers fear smaller pension pots after salary sacrifice reforms

Two-thirds think changes will mean paying more National Insurance

Jasmine Urquhart
clock 08 January 2026 • 2 min read