Reducing the money purchase annual allowance

The pension flexibilities introduced in April 2015 gave savers the ability to access their hard-earned pension savings flexibly, as best suits their needs. Once a person has accessed pension savings flexibly, if they wish to make any further contributions to a defined contribution pension, tax-relieved contributions are restricted to a special money purchase annual allowance (MPAA).

This consultation relates to government proposals to reduce the MPAA to £4,000, with effect from April 2017.