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SIPP Pension Age - I'm Confused is it 55 or 57?


montecristo
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montecristo

I am trying to get my head around the recent consultation from HMRC regarding increasing in minimum pension age.  As I'm in my late 40s and just fall below the 2028 date I was under the impression that the minimum age I could access a SIPP was 57.

However the consultation document has these points. Does this mean if you currently have a SIPP with a minimum age access age of 55 it will remain 55 even after 2028?  I read the MSE thread (link below) and I'm none the wiser.

  • Protection from the increase in NMPA will only apply to those individuals who have an existing right within their scheme rules at the date of this consultation to take pension benefits before age 57. In other words, a member’s protected pension age will be the age from which they currently have the right to take their benefits. For members of a registered pension scheme (active, pensioner or deferred members) who do not have such a right, they will retain the current NMPA (age 55) until April 2028, from which point the NMPA will increase to age 57.
  • If a member is protected, future contributions to the protected scheme - including those after 2028 - can be accessed from age 55.
  • Pensions opened after 11th February 2021 will have a minimum pension age of 57 from 6 April 2028. Protection is on a pension-arrangement basis, not related to the individual, so changing jobs would mean the new pension would have a minimum pension age of 57 from 6 April 2028. However, it presumably would be possible to transfer newly accrued pension into the protected pension arrangement if desired (and if permitted by former scheme).

 

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/960034/NMPA_consultation_2021.02.10.pdf

https://forums.moneysavingexpert.com/discussion/6240982/increase-to-minimum-pension-age-from-55-to-57-february-2021-hmt-consultation

Edited by montecristo
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SpectrumFX

I was under the impression that it was to be a blanket move to 57, but based on your quotes above it looks like they're planning for existing pension arrangements to maintain grandfathered rights to be taken at 55.

If so then I'm happy as a pig in shit because that'll be me retiring 2 years earlier than I thought that I could. Although it would tie me into my current employer to maintain that right, which is something of a pain in the arse.

The Lord giveth. The Lord taketh away.

 

  • Agree 1
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montecristo
1 minute ago, SpectrumFX said:

I was under the impression that it was to be a blanket move to 57, but based on your quotes above it looks like they're planning for existing pension arrangements to maintain grandfathered rights to be taken at 55.

If so then I'm happy as a pig in shit because that'll be me retiring 2 years earlier than I thought that I could. Although it would tie me into my current employer to maintain that right, which is something of a pain in the arse.

The Lord giveth. The Lord taketh away.

 

Absolutely.  I have a LTD and will top up my SIPP to offset corporation tax, more so if it is increased in the budget this afternoon.  It's difficult to get an a clear answer though.

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