minimum pension age - protected rights 55 vs 57

honeststeveo

Hi

So I understand that there is a rise for minimum age at which you can draw on a private pension from 55 to 57 (and possibly beyond).
I would like to understand the minimum age at which I can take my pension given prior and future changes in legislation. I may have a protected right to take it at 55 despite not getting to that age for a good few years yet.

I just came across this article that suggests acting in the next week (by april 5th 2023) might allow you to switch to a pension provider who will protect your right

II notice this was dated July 21 and am guessing its out of date and wrong?

I search some more and HMRC page make it sound fairly simple with 2 criteria being having an unqualified right and being a member at some point in 2021:

PTM062210 explains more about what is meant by an unqualified right

I found more detail on AJBells website:

I've contacted my pension provider and asked if I have an unqualified right (member doesn’t need anyone’s consent) to take benefits. They werent very clear but the said that I have an unqualified right but that they wern't willing to do the admin to protect it but implied I could move to another provider who might. I asked them to refer me to the t&cs which confirm my unqualified right. If I have this what are the considerations about how and when I transfer to another provider (ignoring the usual costs/service level considerations)?

But they also muddied the waters as they were talking about various dates such as whether I was born pre ~1973 or between 73 and 75 and they were also talking about 2028. Im not sure if and how the various dates are relevant.

Hoping someone can fill in the blanks here as its all a bit confusing!

Linton

April 2028 is when the minimum age for accessing a pension rises from 55 to 57. If you reach 55 before then you will be able to take your pension without asking anyone’s permission.  That is the significance of 1973 in AJBell’s questions.

Rights to take your pension earlier than the legal date are rare and are usually related to being in a profession where early retirement is expected eg professional athlete or firefighter.  I could be wrong but guess that a personal pension would not have any special rights.

Bimbly

honeststeveo said:

they were talking about various dates such as whether I was born pre ~1973 or between 73 and 75 and they were also talking about 2028. Im not sure if and how the various dates are relevant.

Because, from 6th April 2028, the Normal Minimum Pension Age is rising to 57. If you were born after 6th April 1973, your NMPA will be 57. There are some people who will be 55 just before the change and then younger than 57 after the change (born 1971-3) and then it gets a bit complicated - is that you?

Does your existing pension(s) have any protected rights to take it at 55? If no, then I don't believe you can retrospectively add this, as it all had to be in place by November 2021. I haven't read the things you linked to, but there is a nice explanation here: https://www.aviva.co.uk/retirement/pension-basics/changes-to-pension-age/

xylophone

Better to use "protected pension age" if that is what is meant.

"Protected Rights" in terms of pensions means something quite different.

See 

https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm062215#:~:text=Some members have a protected,scheme, but not under another.


https://www.drewberryinsurance.co.uk/pensions-advice/faqs/what-are-protected-rights-pensions

granta

This active thread might provide you with further helpful info:

Increase to Minimum Pension age from 55 to 57 on 6th April 2028 - Page 28 — MoneySavingExpert Forum

honeststeveo

Linton said:

April 2028 is when the minimum age for accessing a pension rises from 55 to 57. If you reach 55 before then you will be able to take your pension without asking anyone’s permission.  That is the significance of 1973 in AJBell’s questions.

Rights to take your pension earlier than the legal date are rare and are usually related to being in a profession where early retirement is expected eg professional athlete or firefighter.  I could be wrong but guess that a personal pension would not have any special rights.

Thanks Linton. Yes that makes sense the birth dates quoted relate to ages that either hit 55 before the 2028 date or do but then arent 57 before that date. Neither reflect my situation, I wont be 55 until the next decade so it was rather unhelpful of them to cloud my mind with what are (for me) irrelevant dates.

From what I've read I may be able to legally retain the 55 drawdown age if my pension providers terms are agreeable ie the 3rd group here:

There are broadly three different groups of people who can protect an earlier age. Firstly, those who already have a protected early NMPA as a result of the A-day changes (that increased the NMPA to 55 from 2010). Secondly, those who are in a uniform pension scheme (for example the police) who get to keep their earlier NMPA. And thirdly, those who are in a pension scheme that offers an unqualified right to take pension benefits from a specific age which is younger than 57 get to protect that earlier age. That right has to have been written into the schemes rules as at 21 February 2021 (the date the original consultation on this increase in NMPA was published). If the individual was a member of such a pension scheme at 3 November 2021 they get to keep the earlier access age for the benefits in the pension scheme and any new contributions paid into the pension scheme.

honeststeveo

Bimbly said:

honeststeveo said:

they were talking about various dates such as whether I was born pre ~1973 or between 73 and 75 and they were also talking about 2028. Im not sure if and how the various dates are relevant.

Because, from 6th April 2028, the Normal Minimum Pension Age is rising to 57. If you were born after 6th April 1973, your NMPA will be 57. There are some people who will be 55 just before the change and then younger than 57 after the change (born 1971-3) and then it gets a bit complicated - is that you?

Does your existing pension(s) have any protected rights to take it at 55? If no, then I don't believe you can retrospectively add this, as it all had to be in place by November 2021. I haven't read the things you linked to, but there is a nice explanation here: https://www.aviva.co.uk/retirement/pension-basics/changes-to-pension-age/

Thanks Bimbly. Yes I have have my head around the dates now apart from the date mentioned in the which article of 5th april 2023. Does that still have any relevance or is that article (as i suspect) outdated?

Re my provider giving me protected rights that's what I'm trying to find out. They don't seem to be too switched on so its like the blind leading the blind. Hence I'm trying to fully understand it myself.

Thanks for the avivia link. Yes that reinforces my understanding if only my provider was as helpful to publish this info as avivia..!

honeststeveo

xylophone said:

Better to use "protected pension age" if that is what is meant.

"Protected Rights" in terms of pensions means something quite different.

See 

https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm062215#:~:text=Some members have a protected,scheme, but not under another.


https://www.drewberryinsurance.co.uk/pensions-advice/faqs/what-are-protected-rights-pensions

Thanks Yes I stand corrected it's whether I have a protected pension age that I'm trying to ascertain. That wil help me to be clear with my pension provider

honeststeveo

granta said:

This active thread might provide you with further helpful info:

Increase to Minimum Pension age from 55 to 57 on 6th April 2028 - Page 28 — MoneySavingExpert Forum

Thanks I have started wading through it but at 28 pages its a mega read! several pages in and people are still saying the legislation is yet to become finalised....

Marcon

honeststeveo said:

granta said:

This active thread might provide you with further helpful info:

Increase to Minimum Pension age from 55 to 57 on 6th April 2028 - Page 28 — MoneySavingExpert Forum

Thanks I have started wading through it but at 28 pages its a mega read! several pages in and people are still saying the legislation is yet to become finalised....

The legislation increasing minimum pension age to 57 on 6 April 2028 is already in place, but what's lacking are any transitional provisions - i.e. to deal with people who might be able to draw their benefits if they reach age 55 on (say) 1 April 2028, but are then 'caught' by the new legislation and have to wait another 2 years.

Protected pension ages aren't very common. Are you looking at benefits built up in a defined benefit scheme (aka final salary or CARE) or a defined contribution scheme?

granta

honeststeveo said:

granta said:

This active thread might provide you with further helpful info:

Increase to Minimum Pension age from 55 to 57 on 6th April 2028 - Page 28 — MoneySavingExpert Forum

Thanks I have started wading through it but at 28 pages its a mega read! several pages in and people are still saying the legislation is yet to become finalised....

The Act has now become final. I had similar questions to you and when I posted on the thread quite recently, someone shared the link to it. Not that I really read it all or understood it.
It might help if you gave some general info about who the provider is and type of pension.