Pensions - Articles - Comment on Government confirmation to reduce the MPAA

Rona Train, Partner at Hymans Robertson says: comments on the Government’s confirmation to reduce the Money Purchase Annual Allowance to £4,000 from £10,000,

 “This decision, which will save the government around £70m p.a. has been made at the great expense of those wanting or needing to supplement their retirement income. The Government is clearly trying to stamp out recycling pension savings - whereby people could get a double hit of pensions tax relief by withdrawing money from their pension and then re-investing it. However, retirement is no longer the cliff edge event seen in previous generations and is now often a process that continues over a number of years. In some cases savers are simply unable to retire early but will equally struggle to continue working full time, whether this be for health reasons or caring responsibilities.

 In these cases the government should be doing all it can to offer support. While this decision, undoubtedly, will bring clarity for Trustees, it remains contradictory to the ethos of pension freedoms. For too long now, Trustees have been unable to provide definitive guidance to their members and some members may already contributed more than the £4,000 allowance as a result. They will feel the full force of this proposal given its retrospective enforcement.”

Back to Index

Similar News to this Story

Employees could add GBP840 to their pension pot in 2018
On 6th April 2018, total minimum auto-enrolment contributions will rise from 2% to 5% of banded1 earnings. At the moment, minimum contributions are se
Amount of people in work past seventy almost doubles
The number of employees that expect to work past the age of 70 has nearly doubled in seven years, from 17% in 2010 to 32% in 2017, according to new re
JLT launch new buyout comparison service
JLT Employee Benefits launches a new buyout comparison service and monitoring tool that allows companies and trustees to receive regular bulk annuity

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS


Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.