Money Purchase Annual Allowance (MPAA) guide
Understand what triggers the UK Money Purchase Annual Allowance, its current £10,000 limit and how it affects future pension saving.
Last reviewed 4 September 2026
Frequently asked questions
Does taking 25% tax-free cash trigger the MPAA?
Not by itself, provided the remaining funds enter drawdown and no taxable drawdown income is taken.
Can unused MPAA be carried forward?
No. The current £10,000 MPAA cannot be increased with unused allowance from earlier years.
Does the MPAA affect defined benefit saving?
The MPAA directly limits money purchase input. Separate alternative annual allowance rules can apply to other pension input.