The Meaningful Money Personal Finance Podcast · Wednesday, September 30, 2026
Kev, approaching retirement at 65, asked about the Money Purchase Annual Allowance (MPAA) and its impact if he retires partway through the tax year and has already exceeded the MPAA. Roger Wix clarified that the MPAA is tested *after* it's triggered, meaning Kev is unlikely to exceed the reduced allowance in that tax year. However, total contributions are still measured against the normal annual allowance.
“My question, if I retire partway through the tax year and I've already made pension contributions in excess of the 10,000 pounds MPAA, money purchase annual allowance, does this mean I'd have to wait until the following 6th of April to access my pension other than tax wreck cash to avoid a tax charge?”
“And Kev, obviously understands what triggers the MPAA, doesn't he? You know, anything other than a tax-free cash withdrawal. You're going to trigger the MPAA, which then limits your, you know, future pension contributions to 10 grand.”
“But the nice thing is, it's the MPAA is measured after the trigger. So if you do trigger the MPAA partway through the year, then your allowance, obviously subject to the 60,000 overall threshold and what your pay was, is triggered at that point.”