Odd Pension Rules born 1971 - 73

[Adamski]

If you're born between 6 April 1971 and 5 April 1973, you're facing some very odd pension rules, because they are increasing the early retirement age from 55 to 57.

You'll be able to access your pension for a period from age 55 to 5 April 2028. Then from 6 April 2028 denied access until turn 57!

Weird or what! Thought this may effect someone here so of note.

"Suppose, for example, that you were born on 5 April 1973. In this case you will reach age 55 on 5 April 2028 and can therefore immediately access your pensions on your 55th birthday,' writes Webb.

'However, if you miss that day (perhaps because you are busy celebrating your birthday) you will wake up the next morning to find that you now cannot touch your pensions for another two years.'"

[ursaminortaur]

If you're born between 6 April 1971 and 5 April 1973, you're facing some very odd pension rules, because they are increasing the early retirement age from 55 to 57.

You'll be able to access your pension for a period from age 55 to 5 April 2028. Then from 6 April 2028 denied access until turn 57!

Weird or what! Thought this may effect someone here so of note.

"Suppose, for example, that you were born on 5 April 1973. In this case you will reach age 55 on 5 April 2028 and can therefore immediately access your pensions on your 55th birthday,' writes Webb.

'However, if you miss that day (perhaps because you are busy celebrating your birthday) you will wake up the next morning to find that you now cannot touch your pensions for another two years.'"

As far as I am aware it is worse than that. If you access your pension before 5th April 2028 by using UFPLS you would be able to withdraw some of your pot but because the rest of your pot is uncrystallised it will be as if you hadn't accessed your pension and thus if you then tried to withdraw more after that date then you won't be able to until you are 57. So if you are in that position you need to use flexible drawdown where you crystallise your whole pot (or enough of your pot to cover all likely drawdowns during they period) before 5th April 2028 rather than using UFPLS. Using flexible drawdown before 5th April 2028 will then definitely allow you to continue drawing down after that date.

[moorfield]

Weird or what! Thought this may effect someone here so of note.

Yes it effects me and I've known about it for some time. I will likely ignore it as my own pension planning is targeted at drawing income from 2030 onwards, still younger than 60. But it's good to know the option is still (for now) there should I need it in March 2028.

[licoricel]

As far as I am aware it is worse than that. If you access your pension before 5th April 2028 by using UFPLS you would be able to withdraw some of your pot but because the rest of your pot is uncrystallised it will be as if you hadn't accessed your pension and thus if you then tried to withdraw more after that date then you won't be able to until you are 57. So if you are in that position you need to use flexible drawdown where you crystallise your whole pot (or enough of your pot to cover all likely drawdowns during they period) before 5th April 2028 rather than using UFPLS. Using flexible drawdown before 5th April 2028 will then definitely allow you to continue drawing down after that date.

Thanks for that - very useful - I'm born early '73 and was intending to use UFPLS (under current rules!) and was wondering how it may work. Will probably utilise GIA funds for a two year period in that case.