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...
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