What happens if you straddle pension age increase?

bownyboy

I asked this question to HL and this is the response I got:

"You cannot normally access money in a pension until the normal minimum pension age (NMPA). Currently, the NMPA is 55, but as you correctly stated this is increasing to 57 from 6 April 2028.

As you were born between 6 April 1971 and 5 April 1973, you’ll be in the unusual position whereby you’ll be able to take benefits from your pension once reaching age 55, but only for a limited time.

Once the new minimum pension age of 57 is introduced on 6 April 2028, you won’t be able to access any further benefits from your pension until your 57th birthday, even if you’ve done so before."

Sea_Shell

I wonder if the crucial factor will be "crystallising events" and when they occur?

Pat38493

This is what I had found out recently as posted above, however even though I'm not impacted by it I have to say that is completely ridiculous - surely the legislation should have been framed so that once you have access to your pension, you continue to have access.

FIREDreamer

Pat38493 said:

This is what I had found out recently as posted above, however even though I'm not impacted by it I have to say that is completely ridiculous - surely the legislation should have been framed so that once you have access to your pension, you continue to have access.

You could probably access the already crystallised pot. The uncrystallised pot, possibly not.

Fruga

dchi98 said:

I turn 55 on the 3rd April 2028, a few days before the retirement date change. I have an old bank DB scheme that I am hoping to access at this time. Really not sure if this will be possible due to the tight timescales.

I think all you can do is contact the scheme managers and ask. I personally suspect DB schemes and annuities won't be affected. As per the MM podcast referenced in the thread make sure you get the question answered by the pension technical team, not some first line call centre numpty!

Marcon

Not sure anyone knows...https://community.hmrc.gov.uk/customerforums/pt/01c7bb75-edec-ee11-a81c-00224800d1a4#623db5c2-a4f1-ee11-904b-6045bdcfc3a6

Sea_Shell

Marcon said:

Not sure anyone knows...https://community.hmrc.gov.uk/customerforums/pt/01c7bb75-edec-ee11-a81c-00224800d1a4#623db5c2-a4f1-ee11-904b-6045bdcfc3a6

Clear as mud then.

😲🙄

PParka

I'm in the same situation.  My DC scheme has confirmed I do not have a protected pension age.  Their suggestion was to take enough of my pension at 55 to straddle the gap between 6th April 2028 and my 57th birthday.

My DB scheme will not let me take my pension until I'm 57.  They said the option of taking my pension before 65 is discretionary. They have decided not to let anyone born between 6 April 1971 and 5 April 1973 take it until they are 57.

Marcon

PParka said:

I'm in the same situation.  My DC scheme has confirmed I do not have a protected pension age.  Their suggestion was to take enough of my pension at 55 to straddle the gap between 6th April 2028 and my 57th birthday.

My DB scheme will not let me take my pension until I'm 57.  They said the option of taking my pension before 65 is discretionary. They have decided not to let anyone born between 6 April 1971 and 5 April 1973 take it until they are 57.

Go back and ask them if they understand that trustees can't normally fetter their own discretions... 

Marcon

..and so the HMRC thread plods on: https://community.hmrc.gov.uk/customerforums/pt/01c7bb75-edec-ee11-a81c-00224800d1a4