SIPP Age Limit Increase

MallyGirl

Surely in that case you would just crystallise a small amount, take the TFLS from it and start the clock.

NoMore

MallyGirl said:

Surely in that case you would just crystallise a small amount, take the TFLS from it and start the clock.

Exactly, this is my plan, on my 55th birthday to take the minimum I can to access it and then at least I still have the option to do what I want before the age rise to 57

SIPP1

NoMore said:

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

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.

It goes on to say:-
There may be some clients who say reach 55 in 2027, start to take benefits under phased drawdown and then have to stop further vesting from April 2028 because they're now below age 57. This may need to be planned for by either making sure they designate enough into drawdown before 2028 to cover them for the next year, or bridge the gap with other savings.

2 interpretations
1) If you start drawing down at 55 you can continue irrespective of the NMPA increase
2) You can draw down at 55 then stop on 6th April 2028 when the NMPA hits 57 and until you reach 57  

NoMore

I see that now, it is frustrating that there is no definite answer for those of us 55 before April 2028 but not yet 57 until after April 2028,

As long as you are of pension accessing age and have began drawing down from your pension prior to 2028, you will then be able to continue doing so once the rules change.

We are still evaluating how this may look if you have not began drawing down from your pension once the rules change, however we will have to follow the wider legislation.

Should there be any changes to this, we will update all clients accordingly.

This is what my SIPP provider told me when I asked a year ago.