How will flexi-access drawdown affect my money purchase annual allowance (MPAA)?

Taking the 25% tax-free lump sum will have no effect on your money purchase annual allowance. However, after your first withdrawal from your flexi-access drawdown account, you’ll have a reduced money purchase annual allowance of £4,000 in that tax year and any future tax years. This will apply to any future savings made into a defined contribution pension, like The People’s Pension.

 

 

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