Crystallisation on ii

MoneyGeoff

To try and clarify again. The law is clear that 6 April 2028 is a cliff edge, not a taper. Anyone who turns 55 before that date can crystallise under the current NMPA of 55. Once funds have been designated into drawdown (and the associated PCLS taken) before 6 April 2028, those crystallised funds remain accessible afterwards.

The current HMRC consultation on transitional regulations is only about the continuity of payments after the cliff edge. It exists to make sure that income from funds already crystallised before 6 April 2028 continues to be treated as an authorised payment even if the member is still only 55 or 56. It does not create the right to crystallise in the first place — that right already exists under the primary legislation while the NMPA is still 55. So the consultation strengthens rather than weakens the position. It is HMRC asking what secondary rules are needed to force the operational side (platforms, administrators, tax systems) to keep paying people who have already crystallised, in line with the law.

MoneyGeoff

https://forums.moneysavingexpert.com/discussion/comment/82141812#Comment_82141812

I didn’t phrase it as an IT question on the phone. I’m saying that here because my question keeps getting interpreted as “how long will it take to get my money” rather than “can I initiate crystallision online on my birthday”.

Also, I’m not expecting call centre staff to know all the answers. ii put me on hold and checked with back office which was perfectly reasonable. Based on the info from ii and the posts here from ii customers I’ll transfer to them. If things change I can transfer again but the platform currently does what I’m asking for.

norton66

This year their deadline for SIPP withdrawals was 16th March I assume for everything to be processed by year end

https://www.ii.co.uk/learn/tax/tax-year-end/tax-year-end-deadlines#sipp

Out of interest, were you planning to crystallise the whole fund at 55 irrespective of the age change?

MoneyGeoff

https://forums.moneysavingexpert.com/discussion/comment/82141877#Comment_82141877

Yes I always planned to take the whole 25% TFLS straight away.

retiringin26

I think you may also want to consider the ii people-based process to approve your application that leads to someone casting the crystallization in concrete, bearing in mind the 'checks and balances' and ten days I alluded to in my previous post.

If they are massively busy, the single day 'button pushing' delay that I experienced, might be longer.

MoneyGeoff

https://forums.moneysavingexpert.com/discussion/comment/82141979#Comment_82141979

True but that’s the part that no platform can reasonably give certainty about. I’m satisfied that ii has the functionality to do what I need. Once I’m a customer I can nag them about that nearer the time.

Also, once the consultation has finished, providers will be forced into the realisation that the purpose of it is to decide what regulations are needed to force them to obey the law and continue to pay people in my situation who crystallised pre 6 April 2028. They can’t cut off payments to people that already crystallised.

NoMore

I thought I had a read that there was an intention that as long as you had requested to crystallise before the age change, then that would be ok and you wouldn't be penalised due to any administrative delays beyond your control. Can't find a source for this, and I suppose it still comes down to the definition of what counts as a request.

MoneyGeoff

https://forums.moneysavingexpert.com/discussion/comment/82142024#Comment_82142024

Yes exactly! Thats precisely why my question is very very narrow “does the platform have functionality that allows me to initiate crystallisation on my 55th birthday”. For ii the answer is yes.

NoMore

As I said I hope that it doesn't necessarily need to have crystallised before the change just that they have accepted a request to do so.

In your OP you say your birthday is a week before the change not a day, so I am unclear on why the need to know for definite that it can be done at 0:01 on your birthday, granted it gives you the maximum time but as long as they accept it within the week what is the problem.

I could understand the worry if your birthday was in 2 days or less than the change.

I am also in the age bracket that is affected by this change, but my 55 birthday is just a little under a year before the change, so less pressure for me.

MoneyGeoff

https://forums.moneysavingexpert.com/discussion/comment/82142075#Comment_82142075

The time of 00:01 is just an example. I’m not planning to log on at that time. If thats true then it means its automatic. If the platform said “we review each account manually and enable the functionality sometime after you turn 55” then thats not what I want.