MPAA

[garnery]

Hi,
I am 56 & in sect C. Currently 30 years service. I have 20k in AVC’s & will continue to invest pretty heavily until i take my nra 60 benefits at 60.
My plan after age 60 was to continue working for a couple of years & put my monthly pension from RM into my private pension for drawdown when i stop working.
However, i read recently that taking AVC’ s in this way will trigger the MPAA meaning i can only subsequently put 4k per year into a DC pension. Can anyone confirm ?
I thought mpaa was only triggered when taking taxable income from a DC pension ?
Also, will that affect RM employees when CDC comes in as that is a form of DC pension ?
Thanks

[RobertT]

I believe the £4k limit applies if you have AVC's above 25% pot value and therefore pay tax on that excess. See the pension flexibility sticky for info: https://www.royalmailchat.co.uk/communi ... 27&t=69013" onclick="window.open(this.href);return false;

CDC will potentially have an impact on an individuals MPAA when it's introduced.

[garnery]

Thanks Robert !