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

areader

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.

Does anyone know for sure?

Pensions_matter_2 said:

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)?

If someone manages to find the answer in the HMRC Pension Tax Manual then they are a better person than me. Please let us know! The situation is less than clear. However, I have found the 2 sites linked to below which both claim that you do obtain the protected pension age on money transferred into an an unqualified rights age protected scheme.

abrdn @ https://techzone.abrdn.com/public/pensions/Tech-guide-pension-age

Transferring into a scheme with a low pension age

Perhaps surprisingly, any benefits transferred into a pension scheme that has a protected low pension age can also be paid from that special low pension age - even if they came from a scheme subject to the normal minimum pension age.

Aviva @ https://connect.avivab2b.co.uk/adviser/articles/news/platform-and-investments/Has-the-regulation-for-the-NMPA-created-a-new-critical-advice-point/

Transferring a pension with no “unqualified right” to another scheme or plan where the member has an “unqualified right”

An individual transfer can be added to the pot with the “unqualified right” and it can all then be accessed from age 55. There is no ring-fencing of benefits in this scenario, meaning additional contributions will also benefit from the PPA.

ussdave

Interesting.  Hopefully those links are correct.  I think I'll continue to read up and check, but that has given me hope.

FIREmenow

Hi All, I’ve been trying to catch up with this thread.  As I understand it, the Fidelity SIPP will keep an early retirement age of 55 for those who had already opened one before Nov 2021? So as we don’t have one we have missed the boat there.

My question is, does a SIPP opened after that date with Fidelity have a named early retirement age of 57 or have they changed the wording to align with the legislation of the day?

Basically wondering if it’s still worth opening a Fidelity SIPP for us and our small child for whenever the next change arrives?  Or is this going to be decades away?  We are 40ish and have a toddler.  Many thanks.

Cus

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?

I am in the same position.  Managed to open a 55 SIPP in time with them (thanks MSE) and I have my main SIPP elsewhere with a 57 age rule.

Despite spelling out exactly my question to them on being allowed to transfer into them and then access at 55 I just still got vague answers.  They did recommend I phone their retirement specialist team to discuss.

Alexland

I'm just sitting on my hands not doing anything with my Fidelity SIPP now and letting new sal sac contributions build up in my workplace pension as having age 55 access with Fidelity is too important to my plans to jeopardise it by trying any transfers.
I'd really want any guidance in writing that I could rely upon in future if there are any problems rather than having a telephone conversation with someone who may know less about the situation than me.

Cus

Similar to you I have unfortunately resigned myself to sitting tight and waiting 6 years until I need to do something about it. I keep focus on the ISA angle, and if the Fidelity thing comes good then it's a bonus.  Tbh, even if I had something in writing I wouldn't rely on it, laws changes etc

ussdave

I'm also just continuing to build up my workplace DC via SS whilst awaiting some certainty.

I chased Fidelity again and got a fairly straight answer from them.  Sadly it's a "we don't know yet" answer, but at least it was fairly clear.

Having checked with the pensions team, I can confirm the below:

Your Fidelity SIPP was opened before 4 November 2021. As such, it benefits from a protected pension age of 55, which will apply to any past and future contributions added to your pension.

If you decide to transfer any other pensions you may hold into your Fidelity SIPP, we are waiting for Treasury confirmation on whether these funds will also benefit from your Fidelity SIPPs protected pension age of 55, or whether the age when you can access the transferred funds will depend on the rules of the scheme the funds are transferred from.

Please also note that tax treatment depends on individual circumstances and all tax rules may change in the future.

Alexland

ussdave said:

I'm also just continuing to build up my workplace DC via SS whilst awaiting some certainty.

My total cost of investing at Fidelity is 0.14% (0.12% ETF + 0.02% for the capped platform fee) compared to my sal sac workplace pension which has changed provider and now offers a similar global tracker at 0.20% so it's only costing me 0.06% more.

A few percent market movement during time out of the market for a lump sum transfer could easily use up the difference in cost over many years and I'm now enjoying the challenge of trying to build up enough in the workplace pension via new contributions to catch up with the Fidelity SIPP. It would be helpful if the stock market declined or stagnated for the remainder of my accumulation period before magically rallying just before my 55th birthday.

Cus

ussdave said:

I'm also just continuing to build up my workplace DC via SS whilst awaiting some certainty.

I chased Fidelity again and got a fairly straight answer from them.  Sadly it's a "we don't know yet" answer, but at least it was fairly clear.

Having checked with the pensions team, I can confirm the below:

Your Fidelity SIPP was opened before 4 November 2021. As such, it benefits from a protected pension age of 55, which will apply to any past and future contributions added to your pension.

If you decide to transfer any other pensions you may hold into your Fidelity SIPP, we are waiting for Treasury confirmation on whether these funds will also benefit from your Fidelity SIPPs protected pension age of 55, or whether the age when you can access the transferred funds will depend on the rules of the scheme the funds are transferred from.

Please also note that tax treatment depends on individual circumstances and all tax rules may change in the future.

Thanks. I've just upped my contribution to my workplace pension above the matching percentage from my employer, due to the AA changes and LTA removal (another mess that is hard to plan against). Instead I might as well directly contribute this extra into my Fidelity in case that's the only way it counts at 55...

ussdave

Alexland said:

ussdave said:

I'm also just continuing to build up my workplace DC via SS whilst awaiting some certainty.

My total cost of investing at Fidelity is 0.14% (0.12% ETF + 0.02% for the capped platform fee) compared to my sal sac workplace pension which has changed provider and now offers a similar global tracker at 0.20% so it's only costing me 0.06% more.

A few percent market movement during time out of the market for a lump sum transfer could easily use up the difference in cost over many years and I'm now enjoying the challenge of trying to build up enough in the workplace pension via new contributions to catch up with the Fidelity SIPP. It would be helpful if the stock market declined or stagnated for the remainder of my accumulation period before magically rallying just before my 55th birthday.

I'd be quite happy with that, though I suspect many others wouldn't

My workplace pension fees are paid by the employer so for now I'm going to leave things where they are.  And the tax breaks are sufficiently good on withdrawal that I am considering whether or not it's worth transferring the money out at all.

Cus said:

ussdave said:

I'm also just continuing to build up my workplace DC via SS whilst awaiting some certainty.

I chased Fidelity again and got a fairly straight answer from them.  Sadly it's a "we don't know yet" answer, but at least it was fairly clear.

Having checked with the pensions team, I can confirm the below:

Your Fidelity SIPP was opened before 4 November 2021. As such, it benefits from a protected pension age of 55, which will apply to any past and future contributions added to your pension.

If you decide to transfer any other pensions you may hold into your Fidelity SIPP, we are waiting for Treasury confirmation on whether these funds will also benefit from your Fidelity SIPPs protected pension age of 55, or whether the age when you can access the transferred funds will depend on the rules of the scheme the funds are transferred from.

Please also note that tax treatment depends on individual circumstances and all tax rules may change in the future.

Thanks. I've just upped my contribution to my workplace pension above the matching percentage from my employer, due to the AA changes and LTA removal (another mess that is hard to plan against). Instead I might as well directly contribute this extra into my Fidelity in case that's the only way it counts at 55...

I'm nowhere near the old AA or LTA so that wasn't a concern for me but I suppose it might be in future.  My fanciful hope is that I get made redundant at 55 and then can recycle my redundancy payment through the Fidelity SIPP to feel like I've got a nice boost from it.  I just need sufficient money to bridge to 60ish, when I hope to take my main pension.