We have rebranded Retirement Advantage products as Canada Life. Visit our Retirement Account and Home Finance pages.
Advisers looking to use MyAccess should login to our Adviser Connect Portal.

More Adviser News

Canada Life Article - 2016 Budget Commentary

Reduction in the Money Purchase Annual Allowance

As expected the Money Purchase Annual allowance (MPAA) will reduce from its current rate of £10,000 to the new proposed value of £4,000, following on from the consultation that ended back in February, with the Government planning to legislate in the Finance Bill 2017. So what will this mean for those clients looking to flexibly access benefits and continue to contribute to a money purchase pension or those who had previously triggered the MPAA under the £10,000 limit who are still contributing to a money purchase pension? The Government will publish a response to the consultation on 20 March 2017.

 

Now individuals will have to be a lot more careful if they intend to continue to contribute to either a personal or workplace money purchase pension scheme. The new lower £4,000 figure only equates to a personal contribution of £333.33 gross a month and if you factor in any employer contribution as well it’s not hard to imagine some individuals getting close to or even breaching this limit.

 

So where a client does envisage further contributions being paid into a money purchase plan in the foreseeable future, consideration will need to be given as to whether to delay flexibly accessing any benefits or exploring alternative ways to access pension benefits to ensure that the MPAA is not triggered.

Categories

All News

Search Our News Archive

Archive

Register For Latest News Updates

Register Now

This website is for UK professional advisers only and is not approved for use by private customers.

Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Canada Life International Limited and CLI Institutional Limited are Isle of Man registered companies authorised and regulated by the Isle of Man Financial Services Authority.

Canada Life International Assurance (Ireland) DAC is authorised and regulated by the Central Bank of Ireland.

Stonehaven UK Limited and MGM Advantage Life Limited, trading as Canada Life, are subsidiaries of The Canada Life Group (U.K.) Limited. Stonehaven UK Ltd is authorised and regulated by the Financial Conduct Authority. MGM Advantage Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority.