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55 to 57 transition

Including Financial Independence and Retiring Early (FIRE)
starter
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55 to 57 transition

#494733

Postby starter » April 16th, 2022, 11:41 pm

I'm showing my age here, but I was born between 6 April 1971 and 5 April 1973 which catches me in the uplift of the minimum pension agree from 55 to 57 in 2028

I can't find any advice as to where this leaves me. It seems to say that there are "transitional arrangements" for those who have have started their withdrawal at that time, but I can't see what they are.

Anyone know where I could find them?

moorfield
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Re: 55 to 57 transition

#494751

Postby moorfield » April 17th, 2022, 9:21 am

starter wrote:I'm showing my age here, but I was born between 6 April 1971 and 5 April 1973 which catches me in the uplift of the minimum pension agree from 55 to 57 in 2028

I can't find any advice as to where this leaves me. It seems to say that there are "transitional arrangements" for those who have have started their withdrawal at that time, but I can't see what they are.

Anyone know where I could find them?



https://www.aegon.co.uk/news/pension-ages.html

This may help (I don't understand it), but (like me) you will avoid the uplift date I think, as I understand it if you are 55 on or after 6 April 2028 you will then have to wait another two years until 6 April 2030 to reach the minimum age.

Unless Boris changes the tax year calendar to suit one of his chums of course. :roll:

Hariseldon58
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Re: 55 to 57 transition

#494759

Postby Hariseldon58 » April 17th, 2022, 10:33 am

I was in the group that saw the age rise from 50 to 55, I had a window of opportunity to take a SIPP at 50 but in fact left it to 55. I ‘retired’ at 49 and used other investments to carry me through to 55.

It worked out well for unforeseen reasons.

EthicsGradient
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Re: 55 to 57 transition

#494760

Postby EthicsGradient » April 17th, 2022, 10:38 am

moorfield wrote:
starter wrote:I'm showing my age here, but I was born between 6 April 1971 and 5 April 1973 which catches me in the uplift of the minimum pension agree from 55 to 57 in 2028

I can't find any advice as to where this leaves me. It seems to say that there are "transitional arrangements" for those who have have started their withdrawal at that time, but I can't see what they are.

Anyone know where I could find them?



https://www.aegon.co.uk/news/pension-ages.html

This may help (I don't understand it), but (like me) you will avoid the uplift date I think, as I understand it if you are 55 on or after 6 April 2028 you will then have to wait another two years until 6 April 2030 to reach the minimum age.

Unless Boris changes the tax year calendar to suit one of his chums of course. :roll:

The way I read that is, if you don't have a Protected Pension Age (PPA) explicitly guaranteed in your pension, then, if you're born in that range of 6/4/71-5/4/73, you must either start taking your pension before 6th April 2028, or you'll have to wait until you turn 57.

Those born between 7 April 1971 and 5 April 1973 could be affected if they have not taken all their benefits before 6 April 2028. In a worst-case scenario, someone born on 5 April 1973 would be 55 on 5 April 2028. If they still had benefits to take at 6 April 2028, they would need to wait until they reached age 57 on 5 April 2030 before they would be able to do so. It’s important to note that this could impact people who choose to take their benefits in stages using a phasing option or who choose to use a drip-feed drawdown facility.

And because getting a pension paid is a bureaucratic faff that can take months, there could be some who start the process before 6/4/28, but don't finish - and when that article was written, they didn't know what would happen to those:

The government have said that they will provide further guidance on proposed transitional arrangements aimed at those who, for example, do not have a 55 to 57 PPA and have reached age 55 but not age 57 by 6 April 2028 and have started but not completed the process of taking their benefits.

ursaminortaur
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Re: 55 to 57 transition

#494880

Postby ursaminortaur » April 17th, 2022, 8:32 pm

EthicsGradient wrote:
moorfield wrote:
starter wrote:I'm showing my age here, but I was born between 6 April 1971 and 5 April 1973 which catches me in the uplift of the minimum pension agree from 55 to 57 in 2028

I can't find any advice as to where this leaves me. It seems to say that there are "transitional arrangements" for those who have have started their withdrawal at that time, but I can't see what they are.

Anyone know where I could find them?



https://www.aegon.co.uk/news/pension-ages.html

This may help (I don't understand it), but (like me) you will avoid the uplift date I think, as I understand it if you are 55 on or after 6 April 2028 you will then have to wait another two years until 6 April 2030 to reach the minimum age.

Unless Boris changes the tax year calendar to suit one of his chums of course. :roll:

The way I read that is, if you don't have a Protected Pension Age (PPA) explicitly guaranteed in your pension, then, if you're born in that range of 6/4/71-5/4/73, you must either start taking your pension before 6th April 2028, or you'll have to wait until you turn 57.

Those born between 7 April 1971 and 5 April 1973 could be affected if they have not taken all their benefits before 6 April 2028. In a worst-case scenario, someone born on 5 April 1973 would be 55 on 5 April 2028. If they still had benefits to take at 6 April 2028, they would need to wait until they reached age 57 on 5 April 2030 before they would be able to do so. It’s important to note that this could impact people who choose to take their benefits in stages using a phasing option or who choose to use a drip-feed drawdown facility.

And because getting a pension paid is a bureaucratic faff that can take months, there could be some who start the process before 6/4/28, but don't finish - and when that article was written, they didn't know what would happen to those:

The government have said that they will provide further guidance on proposed transitional arrangements aimed at those who, for example, do not have a 55 to 57 PPA and have reached age 55 but not age 57 by 6 April 2028 and have started but not completed the process of taking their benefits.


Note the words "have not taken all their benefits before 6 April 2028". If using drawdown you should crystallise the pot using flexi-access drawdown and not use UFPLS. If you used UFPLS the part left undrawn would remain uncrystallised and you could find that you wouldn't be able to make another UFPLS drawdown until you were 57.


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