The Money Purchase Annual Allowance (MPAA) has created a pensions tax trap for millions of people aged over 55, according to new research.

The Treasury has been urged to increase the money purchase annual allowance (MPAA) to its original £10,000 level in the forthcoming spring Budget.

The cost of living crisis could lead to mass breaches of the money purchase annual allowance (MPAA) as more people flexibly access taxable income from their retirement pot to cover increased costs.

Pension savers over the age of 55 are unintentionally triggering the Money Purchase Annual Allowance by tapping into their pension savings to tide them over with the growing cost of living, according to a new report.