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

Linton

granta said:

Linton said:

granta said:

Linton said:

granta said:

I also have experience of Fidelity telling me different things at different times, both in writing and over the phone. They have admitted their error on some of these but the inconsistency has made me more cautious about transferring to them.

Specifically, I have an age 55 protected pension elsewhere that I was planning on transferring to Fidelity (their latest email confirmed it would remain protected but previous ones didn't). I might just wait until further clarity emerges. Though I have also read elsewhere that it would now remain protected whoever I transfer to which I don't think the draft legislation allowed for. 

I don't want to start a transfer and lose my protected status as presumably Fidelity/whoever will not be able to rectify their mistake and just grant access at 55 if it's now allowed!

Normally when you have a pension with guranteed benefits you lose them if you transfer.  That is a major reason for not transferring a pension.  I cant see an age protected pension would be any different.

Fidelity did eventually confirm that the age 55 access would be protected (in line with the legislation I think) and the original provider also provided a letter confirming this.
Since then though, the original provider has started allowing transfers in and have said any new contributions or transfers in would now be subject to the age 55 access rule. So it seems I have two options for age 55 access, and could just transfer everything to that provider closer to retirement.

Interesting - I wonder how they will handle mixed portfolios or will they prevent you adding to your transferred protected age portfolio?

I'm not sure if I've understood your question clearly but as far as I know, the original provider have said any pensions transferred to them (today at least, I don't know if future rules could change?), will be accessible at age 55. So in theory, I could hold the bulk of my SIPP anywhere and then transfer back into the original provider when I reach 55 (or 54 and a half).
I think this is the rule Fidelity apply to anyone who opened a SIPP with them before the change in government rules - I missed that boat so only my transferred portion qualifies for age 55 access. But i have the other option should I want it - I've left a nominal amount in to keep it active. I'm glad I did not do a full transfer out.

Isn't your pension different to most as it appears to have a contractual right of access at 55?  What happens if you now transfer a non contractual pension into your new one? Or are you saying that all pensions opened before the move to age 57 access retain access to age 55?  If the latter is true then the move to age 57 wont actually be significantly implemented for decades. 

My point is that it seems that with suitable transfers or new contributions one could end up with a single pension containing some investments which are eligible for access at 55 whereas others are not accessible until 57. This would be very difficult to administer, if not impossible.

granta

Linton said:

granta said:

Linton said:

granta said:

Linton said:

granta said:

I also have experience of Fidelity telling me different things at different times, both in writing and over the phone. They have admitted their error on some of these but the inconsistency has made me more cautious about transferring to them.

Specifically, I have an age 55 protected pension elsewhere that I was planning on transferring to Fidelity (their latest email confirmed it would remain protected but previous ones didn't). I might just wait until further clarity emerges. Though I have also read elsewhere that it would now remain protected whoever I transfer to which I don't think the draft legislation allowed for. 

I don't want to start a transfer and lose my protected status as presumably Fidelity/whoever will not be able to rectify their mistake and just grant access at 55 if it's now allowed!

Normally when you have a pension with guranteed benefits you lose them if you transfer.  That is a major reason for not transferring a pension.  I cant see an age protected pension would be any different.

Fidelity did eventually confirm that the age 55 access would be protected (in line with the legislation I think) and the original provider also provided a letter confirming this.
Since then though, the original provider has started allowing transfers in and have said any new contributions or transfers in would now be subject to the age 55 access rule. So it seems I have two options for age 55 access, and could just transfer everything to that provider closer to retirement.

Interesting - I wonder how they will handle mixed portfolios or will they prevent you adding to your transferred protected age portfolio?

I'm not sure if I've understood your question clearly but as far as I know, the original provider have said any pensions transferred to them (today at least, I don't know if future rules could change?), will be accessible at age 55. So in theory, I could hold the bulk of my SIPP anywhere and then transfer back into the original provider when I reach 55 (or 54 and a half).
I think this is the rule Fidelity apply to anyone who opened a SIPP with them before the change in government rules - I missed that boat so only my transferred portion qualifies for age 55 access. But i have the other option should I want it - I've left a nominal amount in to keep it active. I'm glad I did not do a full transfer out.

Isn't your pension different to most as it appears to have a contractual right of access at 55?  What happens if you now transfer a non contractual pension into your new one? Or are you saying that all pensions opened before the move to age 57 access retain access to age 55?  If the latter is true then the move to age 57 wont actually be significantly implemented for decades. 

I will need to check as your questions are making me question my understanding, which is no bad thing!
I have a letter saying the pension has a contractual right of access at age 55. This applies to any future contributions or transfers in as it's the pension that is protected. Therefore, I had interpreted that as meaning that if I later transfer in any other non-contractual pensions before age 55 into this one pot, I will be able to access it all at age 55. Does that seem logical? 
If I can find the letter, I will post an extract.

cloud_dog

I don't know if this helps and all of the act needs to be read to ensure accordance but....

https://www.legislation.gov.uk/ukpga/2022/3/enacted

(Section 10, sub-section 5 is applicable)

steviola

I have a SIPP with Fidelity opened in October 2021.

Fidelity have told me that the cutoff for access at at 55 is that the SIPP needed to be open before 11th of Feb. 

I think the cutoff should be 3rd of November based on the legislation copied below.

Any views on this? Should I push Fidelity?

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.

cloud_dog

3rd of November as far as I am aware.

granta

cloud_dog said:

I don't know if this helps and all of the act needs to be read to ensure accordance but....

https://www.legislation.gov.uk/ukpga/2022/3/enacted

(Section 10, sub-section 5 is applicable)

Thanks, I think if I have understood correctly, that confirms what I was told by the provider.

Extract from their letter says:

"Your pension plan gives you a unqualified right to take your benefits before age 55. This applies to the funds already invested and any future contributions you may make to the plan. Whether or not this applies to any pension fund you transfer in will depend on the current rules of that pension. You will need to check with your current pension provider whether you are protected from that pension age increase [NB Fidelity confirmed I am protected for the part I transfer but NOT new contributions]. If you are this will continue should you transfer to our pension plan.
As previously confirmed you can transfer part of your fund to another provider. As pension age under our plan is protected at age 55, this would continue to apply to the part you transfer out."

The bit that is less certain is what would happen if I chose to transfer out the protected part FROM Fidelity as it sounds like this would depend on the new provider. Not likely to happen but just interested to know. 

cloud_dog

As far as I am understand if you transfer out to another scheme, that schemes rules will apply.  So, if you transfer from Fidelity (protected age) to Vanguard (no protected age) you will lose the protected age 55 rights.

ussdave

I know this has been discussed various times but I'm still struggling to find anything concrete to confirm one way or another on whether I can transfer funds into my Fidelity SIPP (with protected age 55 access) from a pension that does not have that protection and still retain my age of access rights on the full amount.

I've messaged Fidelity about it, who have stated (overly) simply that I *would* retain this right but I wanted to be 100% sure before I consider messing around with things.  

Does anyone know for sure?

cloud_dog

ussdave said:

I know this has been discussed various times but I'm still struggling to find anything concrete to confirm one way or another on whether I can transfer funds into my Fidelity SIPP (with protected age 55 access) from a pension that does not have that protection and still retain my age of access rights on the full amount.

I've messaged Fidelity about it, who have stated (overly) simply that I *would* retain this right but I wanted to be 100% sure before I consider messing around with things.  

Does anyone know for sure?

As far as I am aware, the 'new' money will not benefit from the protected age.  It was hoped in the early days of this being published that might be the case, but I think the idea has been quashed.  Have a read of the legislation (Section 10 possibly):

https://www.legislation.gov.uk/ukpga/2022/3/enacted

Pensions_matter_2

HMRC Pensions Tax Manual should help explain the new rules on protected pension ages if you take a look (though you will want to get confirmation from your provider and/or advisor)?