Does Annuity Trigger Mpaa?

The MPAA won't normally be triggered if: you take a tax-free cash lump sum and buy a lifetime annuity that provides a guaranteed income for life that either stays level or increases. you take a tax-free cash lump sum and put your pension pot into flexi-access drawdown but don't take any income from it.

What events trigger MPAA?

The MPAA is triggered when you withdraw income from a defined contribution pension scheme, not including any tax-free lump sums you are entitled to. It is designed to limit the amount you can benefit from tax relief after retirement. If you exceed the MPAA, you may face a tax charge.

Does a scheme pension trigger MPAA?

If you receive a scheme pension from any defined benefit arrangement this will not trigger the MPAA.