MPAA: Why do we need the money purchase annual allowance?

Earlier this month, 17 industry organisations signed a joint letter to the Treasury calling for the money purchase annual allowance (MPAA) to be increased back to its original level of £10,000. Such widespread support is unusual and shows the depth of feeling across the board. In response a Treasury spokesperson stated: "The money purchase allowance affects around 25% of occupational defined contribution savers aged 55 and over. The cap is designed to stop pensioners — who have already drawn down some or all of their pension — from receiving double tax relief by funding ongoing savings w...