Selecting retirtement age

Enigmaman

As I near my 59th birthday, I am wondering whether I am running out of time to change the date I have set to claim my Personal pension. 

Is it true you cannot change the age at which you claim your personal pension once you pass your 60th birthday? I seem to remember my pension provider telling me this.  

When I set up the policy, it was 65, but the state pension age for people born in 1966 has been raised to 67 since then.

This could create a problem for me as it would potentially be taken out of means-tested benefits.

So, do I need to make any change before my 60th birthday?
     

TadleyBaggie

It all depends on the pension provider. You would need to ask them. 

OldMusicGuy

For most DC (private) pension schemes, you can start taking the pension after you reach 55. Generally the date you give them for taking the pension is indicative only, it allows the provider to create the forecasts of what you might receive and it's also when they will send you information about how to take the pension as you approach your retirement date. But you generally have complete freedom over how and when you take the pension after age 55, see here for more info: https://www.gov.uk/personal-pensions-your-rights/how-you-can-take-pension

However, like TadleyBaggie says, you should check with the pension scheme provider as depending on the age of the scheme and the type of scheme there may be some restrictions on how and when you take the pension.  

Albermarle

s it true you cannot change the age at which you claim your personal pension once you pass your 60th birthday? I seem to remember my pension provider telling me this.  

I have never heard this before, so probably you have misunderstood something, but as already said best to check.

When I set up the policy, it was 65, but the state pension age for people born in 1966 has been raised to 67 since then.

Normally there is no direct relationship between state pension age and when you can take a personal pension.

As said the retirement age in the pension providers system is purely for admin purposes, it is not a fixed date when you have to actually take the pension.

I guess it is possible that the pension provider will not allow you to change the age in their system once you are 60, but that does not actually affect when you can take the pension. Unless there is something very unusual about your pension.

penners324

For most pension schemes tbe retirement date only impacts the lifestyling balance of investments.

You can still retire whenever you want

DRS1

You may also wish to check whether there are any bits of the pension tied to the age you selected (eg guaranteed annuity rate or market value reductions)  That may not be an issue depending on how old the pension is and how it is set up.

For the means tested benefits you may want to look into how that treats a pension - eg does it assume you take it when you are entitled to it (and what does it say if you try to change that date)

Enigmaman

DRS1 said:

You may also wish to check whether there are any bits of the pension tied to the age you selected (eg guaranteed annuity rate or market value reductions)  That may not be an issue depending on how old the pension is and how it is set up.

For the means tested benefits you may want to look into how that treats a pension - eg does it assume you take it when you are entitled to it (and what does it say if you try to change that date)

I the case of UC, any pension income (e.g. an annuity) would, I believe, count as income in the way that any savings over £6000 are. I would need to check that, however.   

dunstonh

As I near my 59th birthday, I am wondering whether I am running out of time to change the date I have set to claim my Personal pension. 

With the vast majority of DC pensions, it is totally irrelevant.  Indeed, we frequently put the scheme age to 99 nowadays as that 10% life expectancy for many people.

If you are in a with profits fund with the potential for a market value reduction or there are GARs, then holding the original scheme date can be beneficial.

Is it true you cannot change the age at which you claim your personal pension once you pass your 60th birthday? I seem to remember my pension provider telling me this.  

No.   personal pensions have had a scheme age range of 50-75 since 1988.   (increased to 55 and soon to 57)

However, if its not a personal pension but a section 226 RAC or a section 32 buy out bond or a hybrid pension, then past rules were different and in some less common cases, you would take them at age 60 as there was no benefit to continue past age 60 or you could lose valuable benefits if you went beyond the scheme age window.

Enigmaman

dunstonh said:

As I near my 59th birthday, I am wondering whether I am running out of time to change the date I have set to claim my Personal pension. 

With the vast majority of DC pensions, it is totally irrelevant.  Indeed, we frequently put the scheme age to 99 nowadays as that 10% life expectancy for many people.

If you are in a with profits fund with the potential for a market value reduction or there are GARs, then holding the original scheme date can be beneficial.

Is it true you cannot change the age at which you claim your personal pension once you pass your 60th birthday? I seem to remember my pension provider telling me this.  

No.   personal pensions have had a scheme age range of 50-75 since 1988.   (increased to 55 and soon to 57)

However, if its not a personal pension but a section 226 RAC or a section 32 buy out bond or a hybrid pension, then past rules were different and in some less common cases, you would take them at age 60 as there was no benefit to continue past age 60 or you could lose valuable benefits if you went beyond the scheme age window.

I have just checked with the provider (Reassure) and they say the age is purely for illustrative purposes and has no bearing on when I can take the pension.  

If I do not claim it by age 65, then apparently this illustrative age rolls on to 70.

Moonwolf

Are you keeping track of what the pension is invested in?

I would just mention that some pensions (particularly older ones)  move your money into less volatile investments as you approach retirement. This is called lifestyling and can adversely impact your investments, particularly if you aren’t planning on taking an annuity. Retirement age might have an impact here.

Enigmaman

Moonwolf said:

Are you keeping track of what the pension is invested in?

I would just mention that some pensions (particularly older ones)  move your money into less volatile investments as you apportion retirement. This is called lifestyling and can adversely impact your investments, particularly if you aren’t planning on taking an annuity. Retirement age might have an impact here.

Yes, my provider did allude to lifestyling but it appears my policy does not feature this.