The government has introduce a second finance bill today which will reinstate many of the changes dropped before the general election including the controversial cut to the Money Purchase Annual Allowance.

The freedom to withdraw pension funds from 55 needs to be accompanied by flashing warning lights, a pensions firm director says, after the cut to the Money Purchase Annual Allowance was sealed.

A survey of financial advisers has found that nearly four in 10 (39%) will take a cautious approach to the MPAA cut deferral and advise clients to avoid contributing more than £4,000.

The Government has this morning effectively put on ice the planned cuts to the Money Purchase Annual Allowance.