Increase to Minimum Pension age from 55 to 57 on 6th April 2028

JoeCrystal

Does this apply to all personal pension (and auto-enrollment) schemes today or just selected ones? I do not want to be caught by surprise should one or both of my current schemes come back to me saying that all my funds are subject to 57 rather than 55. Or should I ask both of my pension providers for their views on this matter, or is it just too early to ask?

spaniel101

MDMD said:

Alexland said:

I would say your above Vanguard terms are not an unqualified right at 55 as they clearly link to minimum pensionable age giving 55 almost as an example of the current value.
I am more hopeful with the Fidelity terms posted by MDMD on page 4 of this thread as they clearly say 55 with a later note that the terms may generally (not specifically access age) require amending for changes in the law.

Yes, I am a bit more hopeful than I was in February based on the above information as there doesn’t seem to be anything that permits or makes a change based on underlying pension legislation, just one based on generic legal changes:

Legal Requirement means any applicable law or regulation (including rules made by the FCA or any other regulatory body); a decision by a court, ombudsman or similar body; or any industry guidance or codes of practice which we follow

https://www.fidelity.co.uk/static/pdf/personal/pensions/sipp/fidelitysipp-kfd-clientterms.pdf

I wonder if im just being overly suspicious, the very helpful Fidelity link above now shows:

Something went wrong

The page you are looking for can’t be found.

Maybe the address is incorrect, or maybe the page doesn’t exist. Either way, there’s nothing here…

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ussdave

Sorry if I've missed something on this but are we still awaiting confirmation on whether or not a SIPP that is seemingly unambiguously payable at 55 that is opened before 2023 would remain payable at 55?

I'm 39 and not really expecting to retire before 58-60, which would likely be fine with the expected pension access age for me....but if there's a chance to retain any earlier access it seems sensible to stick at least some money in such a SIPP.

Edit: To add to the above... Even if I couldn't retain access at 55, retaining anything before 58 would be nice to have in my back pocket.

Paul_Herring

ussdave said:

Sorry if I've missed something on this but are we still awaiting confirmation on whether or not a SIPP that is seemingly unambiguously payable at 55 that is opened before 2023 would remain payable at 55?

From Vanguard when I queried them on whether I'd be prevented from withdrawing funds while I'm 56 having started to withdraw while 55... (I'm 55 in 2027)

We are currently reviewing the draft legislation that has been published and we will add content to the Help section of our website over the course of the next few days.

That was on 23rd July... 

hugheskevi

ussdave said:

Sorry if I've missed something on this but are we still awaiting confirmation on whether or not a SIPP that is seemingly unambiguously payable at 55 that is opened before 2023 would remain payable at 55?

I'm 39 and not really expecting to retire before 58-60, which would likely be fine with the expected pension access age for me....but if there's a chance to retain any earlier access it seems sensible to stick at least some money in such a SIPP.

Edit: To add to the above... Even if I couldn't retain access at 55, retaining anything before 58 would be nice to have in my back pocket.

There won't be definitive confirmation until the legislation is passed, which won't be until after Parliamentary recess in the autumn at the earliest. Until that point, scheme managers can only prepare assessments of their scheme subject to final legislation.

For the time-being, the clearest guidance HM Treasury have provided about what constitutes an unqualified right and so confers protection is:

Where the rules expressly state that benefits can be drawn from 55 (as at 11 February 2021), the Government considers that would amount to an unqualified right.

Conversely, where the rules refer to the Normal Minimum Pension Age (NMPA) or its underlying legislation (e.g. permitting benefits to be taken from the lowest age consistent with the Finance Act 2004 regime) that would not confer an unqualified right to a Protected Pension Age (PPA);

RoadToRiches

Are these dates set in stone?  Could the government bring the date forward for when the change to 57 comes into effect? I hope not.

Terron

RoadToRiches said:

Are these dates set in stone?  Could the government bring the date forward for when the change to 57 comes into effect? I hope not.

No. The legislation has not been passed. They could bring it forward, but that seems unlikely.

Alexland

I'd agree assuming this draft legislation is passed and they have given people a protected retirement age of 55 in their schemes then it would be very hard to defend taking it away again.

ussdave

Thanks for the replies above.  I guess we can't really be sure but given the minimal cost in opening a small Vanguard fund it seems worth doing, even if there's a chance this won't work out at all or only the funds in there at the time of legislation are covered by the protected age.

MaxiRobriguez

Anyone who's in an Aegon RetireReady scheme: I asked Aegon outright about retirement ages and they confirmed that access would still be at 55.