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

Current set up creates problems rather than solving them

clock • 3 min read

At present, the MPAA feels like a sledgehammer to crack a nut, writes Lisa Webster...

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...

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