| If you decide to take some money out of your pension beyond your 25% tax-free lump sum, this triggers the money purchase annual allowance (MPAA). With MPAA, the contribution limit for your pension each tax year drops from £60,000 (or less if you're impacted by the Tapered Annual Allowance) to a lower limit of £10,000. If you still plan to work and want to keep saving into your penson to take advantage of your employer's contributions, it should definitely be a factor in how and when you decide to draw from your pension. |
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