SIPP Age Limit Increase

SIPP1

Hi

Has anyone considered the following.  I fall into the age bracket I am talking about

Currently at age 55 (so long as you turn 55 before April 2028) you can withdraw from a SIPP (recognising the tax implications but that's not the question here)

I will turn 55 BEFORE April 2028 so in theory could then withdraw from my SIPP.  On April 6th 2028 the age limit to withdraw from a SIPP increases to 57 and is then linked to 10 years below normal pension age.

Is anyone else in this bracket?

Does the SIPP age limit increase mean I could start withdrawing when I turn 55 but would have to stop until I then reach age 57/or what ever the then normal pension age is?

Thanks

JoeCrystal

Do you know if your SIPP have a protected retirement age for a start?

SIPP1

JoeCrystal said:

Do you know if your SIPP have a protected retirement age for a start?

Hi.  No it doesn't.  
Just feels odd that I can/could withdraw for 6 months or so then have to wait a further 18 months before withdrawing again. 
An odd quirk in the legislation perhaps

NoMore

If you access the pension after your 55 but before the April 2028 age increase to 57 then you are ok to continue to access. If you don’t make any access then there is a immediate jump to 57 in April 2028 

I am in the same age bracket and also have the bizarre right to begin accessing at 55, not at 56 but then again at 57. Assuming I don’t do anything at 55. 

Edit: if you’re 55 now you will be older than 57 in 2028 so all of this doesn’t even apply to you. There no link to state pension minus ten years. The legislation is only changing the age to 57. 

LHW99

My understanding is that it is your age before 6 April 2028 that counts. So provided you are of an age that allows the withdrawal from a pension, and start withdrawals before the rise in age kicks in, that's it.

I could of course be wrong, and I suppose it could only be lump sums that are caught rather than regular income, but it would make it messy if people did have to pause their plan for up to 3 years.

westv

LHW99 said:

My understanding is that it is your age before 6 April 2028 that counts. So provided you are of an age that allows the withdrawal from a pension, and start withdrawals before the rise in age kicks in, that's it.

That's my understanding too and I'm sure that's what occurred when the age was moved from 50 to 55.

SIPP1

LHW99, westv & NoMore.  Really appreciate you comments - thank you
Is this what you all think/assume or is this part of the legislative change?  I have a conflicting opinion, from a reliable  source in the industry, that once the age goes up to 57 even if you have started to draw down (because you turned 55 before the change) you would then have to wait until you turn 57.

SIPP1

 wait until you turn 57. - I mean stop withdrawing and wait until you turn 57

NoMore

I have contacted my SIPP provider who assured me if I have already accessed the SIPP before the age increase to 57 then I can continue to do so. I don't see how the government should stop you if you already have a pot in drawdown.

NoMore

Who and when?
The NMPA will increase to age 57 on 6 April 2028. This increase to the NMPA has been in the pipeline since 2014. There will be no phasing of its introduction. For those without a protected pension age, this means:

• Clients born before 6 April 1971 will be unaffected as they will have reached age 57 before the 6 April 2028

• Clients born after 5 April 1973 will have the earliest date they can access their pension benefits delayed by two years

• Clients born between 5 April 1971 and 5 April 1973 will have a window from their 55th birthday to 6 April 2028 to take benefits before the NMPA increases to 57. If they don't access their pension during this time, they will need to wait until their 57th birthday

Minimum pension age rise confirmed - what does this mean for advice? (abrdn.com)

Unfortunately can't find the actual government link to confirm this, but the techzone at arbdn is a great resource and never been wrong for me.

Grumpy_chap

SIPP1 said:

Hi

Has anyone considered the following.  I fall into the age bracket I am talking about

Currently at age 55 (so long as you turn 55 before April 2028) you can withdraw from a SIPP (recognising the tax implications but that's not the question here)

I will turn 55 BEFORE April 2028 so in theory could then withdraw from my SIPP.  On April 6th 2028 the age limit to withdraw from a SIPP increases to 57 and is then linked to 10 years below normal pension age.

Is anyone else in this bracket?

Does the SIPP age limit increase mean I could start withdrawing when I turn 55 but would have to stop until I then reach age 57/or what ever the then normal pension age is?

Thanks

I asked this in another thread recently (which I will try to locate).  The response I was given is that there is no transitional arrangement in place.
So, yes, there will be people, like me, that have a window of a few months when they can retire but if they don't then have to stay through until 57.