What happens if you straddle pension age increase?

DRS1

A stupid question but presumably when it says "aged between 55 and 56 (inclusive)" it does cover a 56 year old? I am not sure why they didn't say aged between 55 and 57.

NoMore

https://forums.moneysavingexpert.com/discussion/comment/82097228#Comment_82097228

The (inclusive) covers 56. I assume because legally this legislation doesn't actually apply to age 57 as your free and clear then. Legal documents can get weird like this. They have to be precise and that can lead to what people would think of as odd phrasing.

mrklaw

Diane Sullivan has a video up if that helps. she’s always very practical with this kind of stuff

https://youtu.be/xeP_e3_o8Ug

ader42

This is really harsh having to 100% crystallize thereby giving up all future potential 25% TFC gains.

If my other half has £100k in her SIPP at age 55 and has to crystallise it all to access any of it she will cap her lifetime TFC at £25k - a very bad move imho, I will tell her to not touch it and leave it alone whilst we live off my money instead and likely just keep feeding her SIPP too.

mrklaw

you don’t have to 100% crystallise. But you may want to crystallise enough to cover until you’re 57 so a couple of years? If you’re going to use FAD you may have planned to crystallise 1 year anyway

NoMore

https://forums.moneysavingexpert.com/discussion/comment/82101974#Comment_82101974

Bit dramatic, its two years at most of withdrawals you would need to crystallise, not all of it. The uncrystallised portion will become available again at 57.