1973 baby dumb question

shads1973

Morning all,

Pension’s, definitely time to start trying to learn. Let’s start with the most basic lack of knowledge question 

So have about 5 different pension pots, 1 from early 20s, 3 since Covid through workplace. My main pension started in 2010.

So my question, Not sure if the change from 55 to 57 means I have to wait an additional 2 years now to access this pot and won’t be until my 57th birthday I can travel the world?

dunstonh

So my question, Not sure if the change from 55 to 57 means I have to wait an additional 2 years now to access this pot and won’t be until my 57th birthday I can travel the world?

Not necessarily.   Some of the pensions may have a protected scheme age.

Dazed_and_C0nfused

shads1973 said:

Morning all,

Pension’s, definitely time to start trying to learn. Let’s start with the most basic lack of knowledge question 

So have about 5 different pension pots, 1 from early 20s, 3 since Covid through workplace. My main pension started in 2010.

So my question, Not sure if the change from 55 to 57 means I have to wait an additional 2 years now to access this pot and won’t be until my 57th birthday I can travel the world?

Are they actually all "pots" or could some be DB pensions, in particular the one starting in 2010? 

They are more likely to have a protected scheme age.

Marcon

shads1973 said:

Morning all,

Pension’s, definitely time to start trying to learn. Let’s start with the most basic lack of knowledge question 

So have about 5 different pension pots, 1 from early 20s, 3 since Covid through workplace. My main pension started in 2010.

So my question, Not sure if the change from 55 to 57 means I have to wait an additional 2 years now to access this pot and won’t be until my 57th birthday I can travel the world?

There's a more basic question you (and many others - you aren't alone!) need to consider before worrying about that. Are you sure you are going to have a financially secure and comfortable old age if you access your pension at the earliest possible opportunity?

If these are defined contribution pensions, once's you've 'spent' what is in the pot, there's no more. 

The chances of any of these being defined benefit, when the main one only started in 2010, are close to zero unless you've had some sort of public sector employment - but even if one of them is, if you take it so far ahead of the scheme's normal retirement age, the starting level will be heavily cut back to reflect the fact it is being paid sooner, and for longer.

Not so much a dumb question as (probably) a dumb idea...

shads1973

Thanks, so question to ask is do they have a protected age scheme from the provider?

To clarify have no intention of taking anything more then 20% as a tax free lump sum which I believe you can do (up to 25-%?). If that isn’t the case then I’ve obviously misunderstood a lot more around private pensions 

dunstonh

Thanks, so question to ask is do they have a protected age scheme from the provider?

yes

To clarify have no intention of taking anything more then 20% as a tax free lump sum which I believe you can do (up to 25-%?).

Just be aware that some pension types, particularly older ones, may not support that and you may need to transfer the pension to one that does.    There are providers that will maintain the protected scheme age on transfers but not all will.

MTB1986

dunstonh said:

To clarify have no intention of taking anything more then 20% as a tax free lump sum which I believe you can do (up to 25-%?).

Just be aware that some pension types, particularly older ones, may not support that and you may need to transfer the pension to one that does.    There are providers that will maintain the protected scheme age on transfers but not all will.

Dunstonh, can you please give any examples of providers that will maintain the protected scheme age on transfers? 

dunstonh

MTB1986 said:

dunstonh said:

To clarify have no intention of taking anything more then 20% as a tax free lump sum which I believe you can do (up to 25-%?).

Just be aware that some pension types, particularly older ones, may not support that and you may need to transfer the pension to one that does.    There are providers that will maintain the protected scheme age on transfers but not all will.

Dunstonh, can you please give any examples of providers that will maintain the protected scheme age on transfers? 

It probably wouldn't help you as the providers or plan versions that IFAs use are different to those if you use a DIY distribution channel.

Albermarle

shads1973 said:

Thanks, so question to ask is do they have a protected age scheme from the provider?

To clarify have no intention of taking anything more then 20% as a tax free lump sum which I believe you can do (up to 25-%?). If that isn’t the case then I’ve obviously misunderstood a lot more around private pensions 

Once you reach the right age ( 55 or 57) you have a number of options, talking here only about DC pensions , not DB pensions
1) Take the whole pension in one go - 25% tax free; 75% taxable
2) Just take the tax free part
3) take part of the tax free part
4) Take part of the tax free part and part of the taxable part
5) Take the tax free part and get a regular monthly taxable income from the rest
6) Buy an annuity

As mentioned already older pensions may not offer all these options.

El_Torro

Assuming none of your 5 pension pots have protections (DB scheme, protected pension access age, etc...) it's worth doing a bit of clean up and consolidate your pensions. You can put them all into your current workplace pension, or have 2 or 3 pots if you want. 

This isn't strictly necessary, just helps with keeping track of where all your money is. 

jdl920p

What date were you born in 1973?  The date you can access a DC pension rises from 55 to 57 in April 2028, so depends which side of the line you fall (assuming you have no protected age)

I don't think there is any gradual change, it is a step change from 6th April (I think this is correct, I am sure will be told swiftly if I am wrong)