The Pensions Advice Allowance

The following Pensions practice note provides comprehensive and up to date legal information covering:

  • The Pensions Advice Allowance
  • What is the Pensions Advice Allowance?
  • What types of pension schemes may offer the Pensions Advice Allowance?
  • Applicability to defined benefit schemes
  • Considerations for contract-based schemes
  • Considerations for trust-based schemes
  • Interaction with the charge cap
  • Who may benefit?
  • Conditions to be an authorised payment
  • Maximum amount
  • More...

The Pensions Advice Allowance

FORTHCOMING DEVELOPMENT: The Parliamentary Under Secretary of State for Pensions and Financial Inclusion, Guy Opperman, has written a letter to the House of Commons Work and Pensions Committee to correct a response he gave to a question about the Pension Advice Allowance (PAA) in an oral session before the Committee as part of its inquiry into pension scams.

Opperman confirms in his letter that HM Treasury are considering what if any changes can be made to the PAA following the evaluation of the Financial Advice Market Review. He states that the Treasury intends to consider the effectiveness of the PAA as part of this wider work to tackle any remaining challenges in the financial advice market, but does not intend to formally report back on the PAA (as he had originally indicated).

For further information, see: Pension Advice Allowance and House of Commons Work and Pensions Committee: Oral evidence: Protecting pension savers - five years on from the pension freedoms: Pension scams, HC 648, 27 January 2021..

What is the Pensions Advice Allowance?

Following a period of consultation in 2016/17, the government introduced, with effect from 6 April 2017, a Pensions Advice Allowance which allows certain pension scheme members to access a set amount of money from their pension pot tax-free to pay for holistic retirement advice. At the member’s

Popular documents