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

Cus

Latest I got from Fidelity was that any new contributions into my SIPP will be accessable at age 55 (I am one of those who will be allowed at 57 normally), and if I transferred into the fidelity SIPP from an age 55 protected DC scheme then also 55 access will be retained. Also if I transfer out of the Fidelity SIPP into a standard SIPP I will retain the 55 age access. Currently they say they don't know yet if a transfer into the Fidelity SIPP from a non age protected SIPP will be accessable at 55, so have to sit, wait and see.  I opened the Fidelity SIPP specifically for that option, so will continue paying the min fees for 5 more years whilst hoping..

steviola

Fidelity saying the same to me.

interestingly other providers are being more clear in their position. For example the peoples pension:

https://thepeoplespension.co.uk/minimum-pension-age-change/

Will I retain/gain age 55 protection if I transfer savings into The People’s Pension?

If you joined before 4 November 2021, any pension pot transferred to us can be accessed from age 55 after 6 April 2028

ussdave

Interesting that others are happy to make a clear statement.  I'm with Fidelity and (though there's no rush really) I'd like to transfer out some of my main funds into it to support access at age 55.

In an ideal world I'd transfer to Fidelity to get the age 55 access and then onwards to use the 3 x small pots rules to get a little extra tax benefits too, so there's also a third provider potentially in the mix.

I have over a decade to go before worrying about this.  I feel for those that are much closer to retirement and for who this could have a more significant impact.

ussdave

Just revisiting this and I found this document:

https://adviserservices.fidelity.co.uk/media/fnw/guides/fidelity-nmpa-factsheet.pdf

Slide 4 states:

"If a client stays in their original scheme, their 2028 protected pension age applies to all their benefits in the scheme, including future contributions and benefits transferred in. If they transfer away from the original scheme, different types of ongoing age protection apply, depending on whether they make an individual or block transfer." (additional caveat text below this but it seems to refer to transferring OUT of the Fidelity scheme.

My interpretation of that is that we can transfer benefits into the Fidelity SIPP from a scheme without pension age protections and those transferred funds would then gain the same protections as those already in place in the Fidelity SIPP (e.g. pension age access of 55 for those who opened the SIPP before ~November 2021.

Just wondering if my understanding is correct or if there's something I've misinterpreted.

Cus

ussdave said:

Just revisiting this and I found this document:

https://adviserservices.fidelity.co.uk/media/fnw/guides/fidelity-nmpa-factsheet.pdf

Slide 4 states:

"If a client stays in their original scheme, their 2028 protected pension age applies to all their benefits in the scheme, including future contributions and benefits transferred in. If they transfer away from the original scheme, different types of ongoing age protection apply, depending on whether they make an individual or block transfer." (additional caveat text below this but it seems to refer to transferring OUT of the Fidelity scheme.

My interpretation of that is that we can transfer benefits into the Fidelity SIPP from a scheme without pension age protections and those transferred funds would then gain the same protections as those already in place in the Fidelity SIPP (e.g. pension age access of 55 for those who opened the SIPP before ~November 2021.

Just wondering if my understanding is correct or if there's something I've misinterpreted.

What does 'benefits transferred in' mean? Is that the funds transferred in from another SIPP, or does 'benefits' relate to something else, like transferring funds from a 55 protected age SIPP held elsewhere that goes into any fidelity SIPP...

Cus

Found this interesting and reassuring on the Aberdeen advisor website (can't post link)

"Transferring into a scheme with a protected pension age

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

However, as mentioned above, this doesn’t apply when transferring into a scheme that has age 55 or 56 protection derived from an individual transfer. New monies coming in will go into a separate pot to which the NMPA will apply"

Paul_Herring

Cus said:

 (can't post link)

link: https://techzone.aberdeenadviser.com/public/pensions/Tech-guide-pension-age#anchor_6

cloud_dog

There is the HMRC Tax Manual page...

https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm062215#protected

... but TBH I'm not sure it helps fully clarify the situation.

Logan72

Is there anymore on this?

Is there a tapered/staggered introduction?  The 55-57 overnight change could now soon be 55-58?

I am 55 weeks BEFORE 6 april 2028 and intend to access my private pension and retire.  My wife is 55, days AFTER 6 april 2028 and intended the same - she/we now have to wait two tears (could be three) before she can do the same.  To all intents we are the same age but one is being unfairly discriminated against?

Very grateful for anything further.

Silvertabby

The last increase - from 50 to 55 - happened overnight in April 2010.