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 £...

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