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

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  • So, given that the Budget didn't include anything different and the draft text in the Finance Bill remains unchanged, do we still think that the Fidelity SIPP might be the way to go?
  • So, given that the Budget didn't include anything different and the draft text in the Finance Bill remains unchanged, do we still think that the Fidelity SIPP might be the way to go?
    The pension industry hate the complexity of the proposed changes. I think they will be revised before becoming law. That said, I can’t see any downside to moving to a Fidelity Sipp, you may end up in exactly the same situation but you won’t end up worse off.
  • cloud_dog
    cloud_dog Posts: 6,326 Forumite
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    edited 4 November 2021 at 12:13PM
    It looks like the Government have already closed the window (as of last night) to open a pension with safeguarded access rights at age 55.

    Treasury Update 4 November 2021

    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • Malthusian
    Malthusian Posts: 11,055 Forumite
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    Stakeholders have subsequently expressed their concerns about this window running until 5 April 2023 as originally proposed, including possible adverse impacts on the pensions market and on pension savers.

    In other words the Government didn't want people choosing Fidelity pensions on the basis they'd be able to access them 2 years earlier, which could turn out to be illusory anyway, as nobody understands how the rules work.
    Said it before, but I can't understand why the Government didn't simply say that from 6 April 2028 all DC schemes will have a minimum access age of 57. It's a long-established legal principle that the law of the land trumps a previously agreed contract (the scheme rules in this case). There was no real backlash when a 250% more significant increase to the minimum age happened on 6 April 2010.

  • "The window closed at 23:59 on 3 November 2021. Those who have already made a substantive request to transfer their pension to a pension scheme with a protected pension age of 55 or 56 will still be able to keep or gain a protected pension age"
  • Alexland
    Alexland Posts: 10,183 Forumite
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    edited 4 November 2021 at 1:08PM
    Thanks cloud_dog - good spot!
    I guess this solves AJ Bell's probable underlying concern that customers might start transferring to Fidelity over the next couple of years and on the positive it does show further commitment from the government in implementing this new protected access age for those of us (and our children) who already have Fidelity SIPPs. I wonder if it's enough of a shift to get industry consensus that these proposals are okay? Once approved I can't imagine anyone will want to revisit this area for a long time.
    p.s. I just asked Fidelity to cancel my recent request to transfer in my tiny L&G SIPP as I don't want to do anything to jeopardise getting access at 55. Not even sure Fidelity had started work on the request so might not count as "substantive" progress.
  • MoneyGeoff
    MoneyGeoff Posts: 257 Forumite
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    edited 4 November 2021 at 1:24PM
    I'm happy to see that the latest document specifies 6 April 2028 rather than just "from 2028".

    I still don't quite follow why people are saying the pension scheme must provide a protected pension age of 55 in order to access it at age 55 after 6 April 2028. From my reading of the documents, the government say that they will protect the pension age of 55, provided the scheme has "an actual or prospective right under the pension scheme to any benefit from an age of less than 57 ... on 11 February 2021"

    Has anyone seen a government document that states the scheme must have a protected right rather than an "actual or prospective right" ? 

    The entitlement condition is met if— (a) immediately before 4 November 2021 the member had an actual or prospective right under the pension scheme to any benefit from an age of less than 57, (b) the rules of the pension scheme on 11 February 2021 included provision conferring such a right on some or all of the persons who were then members of the pension scheme, and (c) the member either had such a right under the scheme on 11 February 2021 or would have had such a right had the member been a member of the scheme on 11 February 2021. 


  • michaels
    michaels Posts: 29,122 Forumite
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    So all that you have up to April (23) to set something up was sadly wrong.

    How about transfers and/or further payments into a protected age scheme - will this still be possible?

    Thanks for your thoughts
    I think....
  • Alexland
    Alexland Posts: 10,183 Forumite
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    Has anyone seen a government document that states the scheme must have a protected right rather than an "actual or prospective right" ?
    The protection being proposed is new - based on if the scheme rules had an unconditional right of access before age 57 on 11th Feb 2021. None of the scheme rules would already detail this proposed protection.
  • Alexland said:
    Has anyone seen a government document that states the scheme must have a protected right rather than an "actual or prospective right" ?
    The protection being proposed is new - based on if the scheme rules had an unconditional right of access before age 57 on 11th Feb 2021. None of the scheme rules would already detail this proposed protection.

    Yes I agree, so if your pension currently says age 55 then it's protected (whether it says protected of not). When they talk about scheme rights the government say: "we mean an unqualified right under which individuals do not need the consent of any other person (such as an employer or trustee) before they can take their benefits at a particular age".

    So why are people fretting about the T&Cs of different SIPP providers? If the scheme says age 55 and has no specific conditions then the government will protect the age of 55, is that right??? 


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