The Lemon Fool

Interesting post from hugheskevi over on MSE (to which I lost my log-in a couple of years back) about the latest condoc on the increase in private pension age: https://assets.publishing.service.gov.u ... .02.10.pdf
Don't know if Kev posts over here or not, but if you do read this, thanks!

As someone who will turn 55 in 2027 I'm mainly relieved to see that it's not going to be subject to a transition period starting before 6 April 2028 - which had been threatened via an asterisk in the original condoc back in 2014.

There is a paragraph suggesting that pension schemes/providers can raise the age earlier if they wish, which I find weird. Surely they must have everybody's dates of birth, and it would take literally one sentence in the rules to explain who can access it at 55 and who has to wait until 57. So what possible reason would they have to artificially deny people who would qualify, or complicate things for themselves by imposing a transition period (presumably in the name of "fairness")? Can anyone shed some light on why anyone would want to do that, so that I can better understand whether Standard Life is likely to? Presumably if they did I could just transfer everything out to somewhere else anyway. I'm obviously not thinking along the right lines though.

Although draft legislation isn't going to be published until the summer, it sounds like any changes from the proposals would only be tinkering.

Couldn't come at a better time for me anyway, as I'm planning to hand in my notice in a few weeks' time, and private pension access age was one of my remaining "unknowns".

Good to know, it was always a reduction to SP-5 I feared, and this will get me over the line.

This is how I already understood it and it's good to see it confirmed again, though it is an interesting position in my household:

Mrs BigTim is 1 year my senior but because this change comes into effect in April 2028, she will be allowed to draw her private pension 3 years before I can access mine.

Can anyone shed light on the preservation of pension ages which seems the main subject of this paper?
Not something I anticipated. Do most SIPP providers have a get out clause that says minimum pension access age as defined in law?
I’m assuming that a preserved access age of 55 will only apply to a minority of policies, mostly big occupational schemes, but I may be completely wrong.
Anyone have any knowledge on this?

Chrysalis wrote:Can anyone shed light on the preservation of pension ages which seems the main subject of this paper?
Not something I anticipated. Do most SIPP providers have a get out clause that says minimum pension access age as defined in law?
I’m assuming that a preserved access age of 55 will only apply to a minority of policies, mostly big occupational schemes, but I may be completely wrong.
Anyone have any knowledge on this?

I think it will mostly be DB schemes and DC schemes with other inbuilt protections such as GARs which will have particular ages set into the scheme rules. Most other scheme's rules would just default to whatever the minimum access age is defined in law at the time that an individual wants to take their pension and although they might specify this explicitly in their scheme rules would not need to as it would be the default position.

Thanks. I already have a preserved minimum access age of 50 for my DB so doesn’t affect it. I was just surprised at the emphasis in the document. I was expecting a phasing rather than a cliff edge but this is barely mentioned.
Anyway all academic to me as I turn 55 this year, and am not rushing to access my pension anyway!

Snakey wrote:Couldn't come at a better time for me anyway, as I'm planning to hand in my notice in a few weeks' time, and private pension access age was one of my remaining "unknowns".

Great! Exciting time, let us know how it goes.

Chrysalis wrote:Thanks. I already have a preserved minimum access age of 50 for my DB so doesn’t affect it. I was just surprised at the emphasis in the document. I was expecting a phasing rather than a cliff edge but this is barely mentioned.
Anyway all academic to me as I turn 55 this year, and am not rushing to access my pension anyway!

The increase from 50 to 55 on 6th April 2010 (I think) was also a cliff edge - a steep 5 year one in this case!

Myfyr wrote:

Chrysalis wrote:Thanks. I already have a preserved minimum access age of 50 for my DB so doesn’t affect it. I was just surprised at the emphasis in the document. I was expecting a phasing rather than a cliff edge but this is barely mentioned.
Anyway all academic to me as I turn 55 this year, and am not rushing to access my pension anyway!

The increase from 50 to 55 on 6th April 2010 (I think) was also a cliff edge - a steep 5 year one in this case!

Yes, it was. One of many nasty cliff edges differentiating (broadly speaking) those born in the 1960s from the 1950s. The receding state pension age being another.

Apologies for being thick. Just trying to read the government article and I'm still confused.

I turn 55 in October 2028.

I have an existing SIPP pension with Interactive Investor which I've held for a number of years.

Would I be able to draw this in October 2028 or will I have to wait until October 2030 (i.e. 57 years old).

I go to https://www.gov.uk/state-pension-age and type in the details as if you were 10 years older. The date they get a SP is the date you have access to your SIPP. 01/10/63 reaches State Pension age on 1 October 2030

Thanks. Shame that means I have to wait until I'm 57.

I thought this thread suggested you could still go at 55 under specific circumstances (e.g. if you already had an existing pension that allowed retirement at 55).

banjocountry wrote:Thanks. Shame that means I have to wait until I'm 57.

I thought this thread suggested you could still go at 55 under specific circumstances (e.g. if you already had an existing pension that allowed retirement at 55).

It very much depends on what your pension is as some are "hard coded" to a certain age, but most, especially defined contribution ones will change to 57.

Some DB pensions have preserved minimum access ages of 50 so they will not change.

Darka wrote:

banjocountry wrote:Thanks. Shame that means I have to wait until I'm 57.

I thought this thread suggested you could still go at 55 under specific circumstances (e.g. if you already had an existing pension that allowed retirement at 55).

It very much depends on what your pension is as some are "hard coded" to a certain age, but most, especially defined contribution ones will change to 57.

Some DB pensions have preserved minimum access ages of 50 so they will not change.

Thanks. Mine is a "regular" SIPP from Interactive Investor.

banjocountry wrote: Thanks. Mine is a "regular" SIPP from Interactive Investor.

Then you will have to wait until 57 so if I were you I would build my ISA's to act as a bridge to cover any time between retirement and access to pensions at 57.

E.g. I'm able to get mine pension at 55 but will still have to fund myself from ISA's etc from when I retire at 52 until then.

Thanks