Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, whether the reduction to £4,000 in the Money Purchase Annual Allowance referred to in paragraph 4.20 of the Autumn Statement 2016, Cm 9362, will apply to people who had already accessed their savings flexibly.

The Money Purchase Annual Allowance applies to anyone who has accessed their pension savings flexibly and makes further money purchase savings. It applies at the level in force at the time of making those subsequent savings.

The Government has proposed a reduction in the allowance to £4,000 from 6 April 2017 and launched a consultation on the detail surrounding this, which ends on 15 February and is available at:

https://www.gov.uk/government/consultations/reducing-the-money-purchase-annual-allowance