Spanner in the works: How to help clients avoid the MPAA

MPAA can reduce DC contributions to £4,000 a year

clock • 3 min read

Mark Devlin explores how to best advise clients who want to take money from a pension and continue funding their retirement pot without triggering the MPAA

As we head into winter with the cost of living crisis continuing we're probably all starting to wonder how many layers of clothes we need to put on before we turn the heating on. For those who are of an age to access their pensions, the temptation may be to dip into those funds to meet some of these immediate and pressing spending needs. But for anyone who is still planning to work (and fund their pensions too) the Money Purchase Annual Allowance (MPAA) can throw a serious spanner in the works. The MPAA can drastically reduce pension funding in the defined contribution world down to £...

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

Women's retirement income outlook improves but 'faster' change needed

Women's retirement income outlook improves but 'faster' change needed

Most women still on track for minimum retirement standard or worse

Alex Levy
clock 10 November 2026 • 3 min read
Pension Lab processes more than one million digital LoAs

Pension Lab processes more than one million digital LoAs

Challenge around ‘standards for consistency’

Sophia Panayi
clock 06 November 2026 • 1 min read
DWP, TPR and FCA launch consultation on guided retirement to help 'resurrect' pensions

DWP, TPR and FCA launch consultation on guided retirement to help 'resurrect' pensions

Consultation covers how default pensions should work in practice

Holly Roach
clock 03 November 2026 • 6 min read