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What is the Money Purchase Annual Allowance (MPAA)?

The Money Purchase Annual Allowance (MPAA) reduces your annual allowance to £4,000.

This applies when you flexibly access pension benefits, such as taking an income from a flexi-access drawdown account. Taking just tax free cash does not trigger the MPAA. Income payments from a Capped Drawdown account will not trigger the MPAA.

Find out more about MPAA