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

Alexland

cloud_dog said:

Isn't the bold section, a coverall from Fidelity's perspective in relation to the ceding scheme (or receiving scheme if transferring out), e.g. they have no control or knowledge over how the ceding scheme rules are defined and therefore cannot confirm if any protections (if they exist) will be retained?

They haven't replied yet but if they are considering the access age of the ceeding scheme would Fidelity need to split into another SIPP account to keep the age 55 and 57 assets seperate or would the age for accessing the whole existing Fidelity SIPP rise to 57? Either way it doesn't seem compatible with the previous paragraph which said that transfers into my existing Fidelity SIPP would be accessible at 55. I'll give them a few more days before chasing as this is probably as new to them as it is to us.

Paul_Herring

Paul_Herring said:

Might as well go see what Aviva has to say...

Finally got an answer. After some preamble about how the first person to pick up my query "interpreted it as a both a request for information and a request to amend your expected retirement age to 57" and "I can confirm that I have now corrected this error and your expected retirement age is back to age 55"...

The new minimum retirement age of 57 only applies to pensions which started after 4 November 2021. As this plan started on 1 March 2013 you will therefore retain your right to withdraw cash from this pension from your 55th birthday onwards, irrespective of the upcoming changes. This is detailed at the following link under the section headed ‘Proposed Revisions’: Increasing Normal Minimum Pension Age - GOV.UK (www.gov.uk)

Alexland

Fidelity's response pasted below - they said that if I transferred in assets from an unprotected age 57 scheme then it would be treated as a separate part to my existing protected age 55 SIPP assets. So the only way to feed that age 55 pot would be via direct contribution which they previously confirmed would not break the protection.

The draft guidance previously stated that you would be given a 'window' to join, or transfer to, a scheme with a PPA of 55 up to 5th April 2023, however this was revised in a written statement published in November 2021 and the window closed on 3 November 2021.

Therefore, you will no longer be able to acquire the right to draw benefits before 57 by joining, or transferring into, a scheme with a PPA of 55, such as Fidelity (unless you were already in the process of transferring their pension, prior to 4th November 2021).

In Summary, you would be able to access the part of your Fidelity SIPP that you held prior to 11 February 2021 at 55, but not any parts that you transfer from a scheme that does not have this protection.

I assume they have some technical way of segregating the SIPP into different parts (perhaps similar to how they treat crystalised and uncrystalised assets?) or maybe they will keep a running total of the percentage of the account that should be accessible at 55?

Either way it looks like from an LTA perspective I will only be able to crystalise my Fidelity SIPP at 55 and will have to wait a further 2 years to crystalise my unprotected scheme(s) by which time they may have grown further.

Thankfully the majority of my pension value is with Fidelity and as I am only expecting to make another year or two of heavy and lumpy salsac contributions into my workplace scheme then by age 55-57 there should still be around 2/3rd of assets with Fidelity.

cloud_dog

Thanks for posting the confirmation from Fidelity. 

It is not an issue for us, but was hoping to be able to leave the sprogs small Fidelity pension, start accumulating elsewhere, and then transfer back at some point in the future (for hoped for earlier access; if required).

ussdave

Agreed, thanks for that.

Bit of a shame as I had hoped to transfer money out of my salary sacrifice work pot into it but not a huge deal.  I'm not actually expecting to be able to go at 55 anyhow so this is more of a 'just in case' thing for me.

Paul_Herring

Alexland said:

I assume they have some technical way of segregating the SIPP into different parts (perhaps similar to how they treat crystalised and uncrystalised assets?) or maybe they will keep a running total of the percentage of the account that should be accessible at 55?

I rather suspect it'll be more akin to how the contracted out contributions ("protected rights") were kept separate from normal contributions, until they were all merged together in 2012.

Cus

This makes things difficult. So I can't transfer anything to my Fidelity SIPP as this will carry the '57' rule. So only new contributions will count, yet my employer will not use a different SIPP, so I could lose all of their contributions just to get my future contributions at 55.

Dh6

Thank you for your response.

I confirm you are correct; you will be able to access your pension at 55 as you opened your account before 4 November.

I trust you find this information useful.

If you require any further assistance, please respond directly to this secure message. Our opening hours are 09:00-17:30 Monday to Friday. 09:00-14:00 on Saturdays.

Yours sincerely

Skye Doherty
Associate - Customer Relations

——————————-
The above is the response I’ve just received from Fidelity.

Kind regards DH

Nurse2047

As my Childrens SIPPs were opened before 4/11 their retirement age is still 55 with fidelity? Is this right? 

Cus

MFW2026 said:

As my Childrens SIPPs were opened before 4/11 their retirement age is still 55 with fidelity? Is this right? 

I believe so. The issue will be how to get money into it, as it seems that only direct contributions will count. Any transfers in the future from other sipps into these might not count.