Pension age question
Discussion
I'm on the cusp (wrong side) of the normal minimum pension age increasing for most people on 6 April 2028 to age 57.
I've therefore been doing some reading on it and I think I may have what the legislation calls a 'protected pension age' which would remain 55.
If I understand correctly to qualify for this I need the following:
- before 4 November 2021 have the right to take benefits before the age of 57
- that right was unqualified
- on 11 February 2021 the scheme rules included provision to pay benefits before age 57
- they were in the process of a substantive transfer to a scheme before 4 November 2021
I have a SIPP from before November 2021 which I have entirely self managed and doesn't have any particular age attached to it beyond the government rules.
Am I correct to think I can access that as normal at 55 and won't have to wait until I'm 57?
I've therefore been doing some reading on it and I think I may have what the legislation calls a 'protected pension age' which would remain 55.
If I understand correctly to qualify for this I need the following:
- before 4 November 2021 have the right to take benefits before the age of 57
- that right was unqualified
- on 11 February 2021 the scheme rules included provision to pay benefits before age 57
- they were in the process of a substantive transfer to a scheme before 4 November 2021
I have a SIPP from before November 2021 which I have entirely self managed and doesn't have any particular age attached to it beyond the government rules.
Am I correct to think I can access that as normal at 55 and won't have to wait until I'm 57?
Pretty sure if you check your state pension forecast online it will tell you your own state pension age
https://www.gov.uk/check-state-pension
https://www.gov.uk/check-state-pension
trickywoo said:
I'm on the cusp (wrong side) of the normal minimum pension age increasing for most people on 6 April 2028 to age 57.
I've therefore been doing some reading on it and I think I may have what the legislation calls a 'protected pension age' which would remain 55.
If I understand correctly to qualify for this I need the following:
- before 4 November 2021 have the right to take benefits before the age of 57
- that right was unqualified
- on 11 February 2021 the scheme rules included provision to pay benefits before age 57
- they were in the process of a substantive transfer to a scheme before 4 November 2021
I have a SIPP from before November 2021 which I have entirely self managed and doesn't have any particular age attached to it beyond the government rules.
Am I correct to think I can access that as normal at 55 and won't have to wait until I'm 57?
I'm also in the situation and think its relatively unclear but suspect you will find that tax free access is limited to waiting until you are 57.I've therefore been doing some reading on it and I think I may have what the legislation calls a 'protected pension age' which would remain 55.
If I understand correctly to qualify for this I need the following:
- before 4 November 2021 have the right to take benefits before the age of 57
- that right was unqualified
- on 11 February 2021 the scheme rules included provision to pay benefits before age 57
- they were in the process of a substantive transfer to a scheme before 4 November 2021
I have a SIPP from before November 2021 which I have entirely self managed and doesn't have any particular age attached to it beyond the government rules.
Am I correct to think I can access that as normal at 55 and won't have to wait until I'm 57?
macron said:
Pretty sure if you check your state pension forecast online it will tell you your own state pension age
https://www.gov.uk/check-state-pension
I've not checked but I'm pretty sure it will say 67.https://www.gov.uk/check-state-pension
My confusion is in the so called 'protected pension age'.
I'm wondering if my SIPP needed to be explicit about age 55 rather than implied to qualify.
If I am reading it correctly anyone with a SIPP before 4 November 2021 can still access as normal at 55 even if they become 55 after the April 2028 shift to 57.
Its not at all clear. Just hoping someone on here could help before I sit on hold to ask my SIPP provider directly.
Yeah it's been one I've been wondering about recently, I'm currently 41 so I'm expecting my state pension age to rise to 68, but given my IM SIPP was opened well before 2020, I'm hopeful I'll have the option to utilise that at 55 should there be enough in there and that sort of thing.
I'm also not entirely clear on whether any regular contributions to that SIPP are ring-fenced until later and that sort of thing.
I'm also not entirely clear on whether any regular contributions to that SIPP are ring-fenced until later and that sort of thing.
Most pensions do not have a protected pension age, it's not as simple as being open before a particular date. If the scheme rules just refer to general stuff then it'll be 57, you only get 55 if by some quirk the scheme rules had written it in as 55.
Most schemes write the rules generically on purpose so they don't have to update them when legislation changes. Ergo, it's rare to be written in as 55.
To know for sure you need to ask each pension scheme that you have and be weary of the first telephone answer you get, as the monkey you speak to probably won't even understand the question half the time... I'd get them to send you a copy of the scheme rules to back up their answer if they say it's protected at age 55.
Most schemes write the rules generically on purpose so they don't have to update them when legislation changes. Ergo, it's rare to be written in as 55.
To know for sure you need to ask each pension scheme that you have and be weary of the first telephone answer you get, as the monkey you speak to probably won't even understand the question half the time... I'd get them to send you a copy of the scheme rules to back up their answer if they say it's protected at age 55.
PistonHead007 said:
Most pensions do not have a protected pension age, it's not as simple as being open before a particular date. If the scheme rules just refer to general stuff then it'll be 57, you only get 55 if by some quirk the scheme rules had written it in as 55.
Most schemes write the rules generically on purpose so they don't have to update them when legislation changes. Ergo, it's rare to be written in as 55.
To know for sure you need to ask each pension scheme that you have and be weary of the first telephone answer you get, as the monkey you speak to probably won't even understand the question half the time... I'd get them to send you a copy of the scheme rules to back up their answer if they say it's protected at age 55.
I don’t have a scheme as such, it’s pure SIPP. When I opened it the age I expected to take it was asked and I said 55.Most schemes write the rules generically on purpose so they don't have to update them when legislation changes. Ergo, it's rare to be written in as 55.
To know for sure you need to ask each pension scheme that you have and be weary of the first telephone answer you get, as the monkey you speak to probably won't even understand the question half the time... I'd get them to send you a copy of the scheme rules to back up their answer if they say it's protected at age 55.
Ask your pension provider.
Honestly I'm not being a smartarse it's just not as black and white as being told 55 when you opened it (loads of pensions still say 55 but then say something in the small print about 57 and if the age rises from 57 those pensions will rise too).
Just ask them to clarify whether it's protected
Honestly I'm not being a smartarse it's just not as black and white as being told 55 when you opened it (loads of pensions still say 55 but then say something in the small print about 57 and if the age rises from 57 those pensions will rise too).
Just ask them to clarify whether it's protected
trickywoo said:
I don’t have a scheme as such, it’s pure SIPP. When I opened it the age I expected to take it was asked and I said 55.
A SIPP is still a pension scheme. All you've done is choose a selected retirement age, which does things like trigger them to write to you nearer the time and/or the target age for lifestyling the investment risk downwards.My answer is correct.
trickywoo said:
I've not checked but I'm pretty sure it will say 67.
My confusion is in the so called 'protected pension age'.
I'm wondering if my SIPP needed to be explicit about age 55 rather than implied to qualify.
If I am reading it correctly anyone with a SIPP before 4 November 2021 can still access as normal at 55 even if they become 55 after the April 2028 shift to 57.
Its not at all clear. Just hoping someone on here could help before I sit on hold to ask my SIPP provider directly.
Ah, my misreading of your Op, sorry, there is a lot about this from providers, eg, from AvivaMy confusion is in the so called 'protected pension age'.
I'm wondering if my SIPP needed to be explicit about age 55 rather than implied to qualify.
If I am reading it correctly anyone with a SIPP before 4 November 2021 can still access as normal at 55 even if they become 55 after the April 2028 shift to 57.
Its not at all clear. Just hoping someone on here could help before I sit on hold to ask my SIPP provider directly.
https://www.aviva.co.uk/retirement/pension-basics/...
"What’s a protected pension age?
There are two types of protected pension age:
1) A protected pension age of 55 or 56. This will apply when the NMPA increases to 57 on 6 April 2028
2) A protected pension age of less than 55"
The second of those is occupationally specific, eg sports people.
It goes on
"A protected pension age of 55 or 56
When the new NMPA comes into force, you might qualify for a protected pension age of 55 or 56, depending on the details of your pension scheme.
If you do qualify, your protected pension age will most likely be 55, which means you’ll need to be 55 or older to start taking money from your pension.
You’ll have this type of protected pension age if all the following apply:
-You had money invested in a pension scheme (an occupational or a personal pension) on 3 November 2021
-The rules of that pension scheme gave you an unqualified right to take your pension savings from an earlier age than 57
-Those rules were in place on 11 February 2021"
So to be Mr Bruno, you need to ask the SIPP provider if the last two are met, assuming the first one already is.
I suspect the salmon pinkish herring here is when you opened it, they asked you something like
"At what age would you like to retire?" To, as a very certain of themselves 007 indicates, merely provide you with illustrations and projections as they are required to, over time.
Who is the provider, out of interest?
Jasey_ said:
https://www.fidelity.co.uk/normal-minimum-pension-...
This fidelity link seems to suggest their sipps would be ok in terms of accessing when you are 55.
As others have said probably need to contact your provider or have a trawl through the small print
"If you opened a SIPP with us or applied to transfer your pension to us before 4 November 2021 - you'll benefit from the Protected Pension Age of 55. This applies to any transfers or contributions you made to your pension on/before 3 November 2021, as well any future contributions.
If you opened a SIPP with us on or after 4 November 2021 - you won't benefit from a Protected Pension Age and the minimum age that you can access your pension will rise to 57 on 6 April 2028. If you will turn 57 before the age increase, you will not be impacted by this change.
"
Thanks for that, very helpful and good news also.This fidelity link seems to suggest their sipps would be ok in terms of accessing when you are 55.
As others have said probably need to contact your provider or have a trawl through the small print
"If you opened a SIPP with us or applied to transfer your pension to us before 4 November 2021 - you'll benefit from the Protected Pension Age of 55. This applies to any transfers or contributions you made to your pension on/before 3 November 2021, as well any future contributions.
If you opened a SIPP with us on or after 4 November 2021 - you won't benefit from a Protected Pension Age and the minimum age that you can access your pension will rise to 57 on 6 April 2028. If you will turn 57 before the age increase, you will not be impacted by this change.
"
Edited by Jasey_ on Tuesday 2nd January 21:54
PistonHead007 said:
trickywoo said:
One would assume that all of the main SIPP platform providers will be the same.
And you'd be wrong, there are far more that don't than those that do. Of the few that do it's usually only some of their products. Hence, check each scheme. Fidelity is a huge SIPP provider anyway, so loads of people like me will have 'lucked into' avoiding the 57 trap the government has set.
trickywoo said:
There will be a lot of peed off HL customers if they don't do the same.
Fidelity is a huge SIPP provider anyway, so loads of people like me will have 'lucked into' avoiding the 57 trap the government has set.
HL can't do the same, it's not something you can change retrospectively. The HL SIPP has no protected retirement age.Fidelity is a huge SIPP provider anyway, so loads of people like me will have 'lucked into' avoiding the 57 trap the government has set.
There won't be that many people it actually affects in reality. It's a small window and most people can't afford to retire at 57, let alone 55.
PistonHead007 said:
HL can't do the same, it's not something you can change retrospectively. The HL SIPP has no protected retirement age.
There won't be that many people it actually affects in reality. It's a small window and most people can't afford to retire at 57, let alone 55.
Actually the implications of the Fidelity setup is that anyone with a pension with them in 2021 can access a pension at 55. They could be 20 now so its a massive plus when the state pension age and associated private access is only going one way.There won't be that many people it actually affects in reality. It's a small window and most people can't afford to retire at 57, let alone 55.
If indeed HL didn't write in a similar provision that Fidelity did they have massively dropped the ball on this.
PistonHead007 said:
HL can't do the same, it's not something you can change retrospectively. The HL SIPP has no protected retirement age.
There won't be that many people it actually affects in reality. It's a small window and most people can't afford to retire at 57, let alone 55.
I'm caught, born 5 months after the cut-off date so can't get my pension for 2 extra years. There won't be that many people it actually affects in reality. It's a small window and most people can't afford to retire at 57, let alone 55.
Enough to retire now, houses paid, new 911 in garage, full pot which I was originally told I'd be able to access aged 50 back in 97 or thereabouts when I started it.
bennno said:
I'm caught, born 5 months after the cut-off date so can't get my pension for 2 extra years.
Enough to retire now, houses paid, new 911 in garage, full pot which I was originally told I'd be able to access aged 50 back in 97 or thereabouts when I started it.
Are you with HL?Enough to retire now, houses paid, new 911 in garage, full pot which I was originally told I'd be able to access aged 50 back in 97 or thereabouts when I started it.
I can't see how anyone wouldn't want pension access as soon as possible. Whether you take anything from it or not its nice to have the flexibility.
bennno said:
I'm caught, born 5 months after the cut-off date so can't get my pension for 2 extra years.
Enough to retire now, houses paid, new 911 in garage, full pot which I was originally told I'd be able to access aged 50 back in 97 or thereabouts when I started it.
Congratulations, you're in the 1%. You've got enough time before reaching 55 to save enough for those extra two years in an ISA for example. Enough to retire now, houses paid, new 911 in garage, full pot which I was originally told I'd be able to access aged 50 back in 97 or thereabouts when I started it.
- Born before 6 April 1971 will be unaffected as they will have reached age 57 before the 6 April 2028
- Born after 5 April 1973 will have the earliest date they can access their pension benefits delayed by two years
- Born between 5 April 1971 and 5 April 1973 will have a window from their 55th birthday to 6 April 2028 to take benefits before the NMPA increases to 57. If they don't access their pension during this time, they will need to wait until their 57th birthday
Are you born after 05.04.73 then?
PistonHead007 said:
Congratulations, you're in the 1%. You've got enough time before reaching 55 to save enough for those extra two years in an ISA for example.
- Born before 6 April 1971 will be unaffected as they will have reached age 57 before the 6 April 2028
- Born after 5 April 1973 will have the earliest date they can access their pension benefits delayed by two years
- Born between 5 April 1971 and 5 April 1973 will have a window from their 55th birthday to 6 April 2028 to take benefits before the NMPA increases to 57. If they don't access their pension during this time, they will need to wait until their 57th birthday
Are you born after 05.04.73 then?
yep.- Born before 6 April 1971 will be unaffected as they will have reached age 57 before the 6 April 2028
- Born after 5 April 1973 will have the earliest date they can access their pension benefits delayed by two years
- Born between 5 April 1971 and 5 April 1973 will have a window from their 55th birthday to 6 April 2028 to take benefits before the NMPA increases to 57. If they don't access their pension during this time, they will need to wait until their 57th birthday
Are you born after 05.04.73 then?
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