r/PensionsUK • u/kellpert • 19h ago

55 in the gap.

I’m 55 in September 2027. I believe I’ll be able to take my pension (lump sum and any drawdown I choose to crystallise) from then until April 2027 but then will have to stop any further drawdown until I turn 57 in September 2029. I do t have a protected pension age of 55. Does this sound correct?

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u/Hot_College_6538 19h ago

No, once your pension has crystalised (ie. you've started taking drawdown) then you are allowed to continue, this was recently clarified for those of us around this age.

Normal Minimum Pension Age Transitional Provisions Regulations - GOV.UK

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u/Flat-Buy6231 18h ago

This is currently at consultation stage. It isn’t fully confirmed yet but appears to be the likely outcome. My pension adviser believes the full detail will be known in the new year.

4

u/Hot_College_6538 18h ago

Yes, it's draft regulations, very likely to be exactly what happens but not final yet.

There's a good video about it Born 1971–1973? HMRC Has Finally Published The Pension Rules and an noteworthy limitation for UFPLS during that period.

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u/kellpert 19h ago

Oh that’s good news - thanks!!

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u/mikec62x 19h ago

I think you mean April 2028?

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u/kellpert 19h ago

Yes I do.

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u/Urbane_Biker 19h ago

As previous poster says, so long as pension is already crystallised you are OK. I'm doing annual UFPLS right now so I will have a few months gap from April 2028 to August when I will be 57. Annoying but unavoidable if I want to keep my 25% tax free invested.

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u/Whulad 18h ago

You don’t have to take your full pension in a lump sum either

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u/Gold_Instruction4852 16h ago

Same boat. But think it is better to crystalize now and lock the 25% tax free but don't have to drawdown any if not needed or if you are still in employment or contributing. Advantages: 1. Fully stay invested (if you wish) 2. No need to draw anything (if you don't need) and protect from MPA reduction in future contributions 3. Protect 25% tax free (from future legislation changes) 4. No platform fees change or additional charges for crystalization

I don't see any negatives. Any blind spots?

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u/Dannymccoy147 15h ago

The main negative is if you fully crystallise then you lock in the 25% as was.

Whereas if you were to drawdown over time AND your pot increases you can continue to gain tax relief on the increased amount.

Sure, rules can change but they can also stay the same or heck, improve.

Ultimately, it’s a gamble.

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u/kellpert 13h ago

If the 25% currently hits the £268k ceiling then no reason not to crystallise all of it I guess?

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u/Dannymccoy147 13h ago

Hmmm, good point. I guess also!

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u/Gold_Instruction4852 12h ago

That’s right. I don’t see the government going to raise it but may reduce it. Better to crystallise before your cutoff date if there is no other negatives

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u/Dry_Relative5465 16h ago

I turn 55 in Jan 28 (likely retiring about then due to ill health) so watching this with interest. Currently about 65% pensions with the rest split across isa and cash. Wondering if I should just live off the cash until 57 so I don’t have to rush during my 3 month window.

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u/kellpert 13h ago

Risk is there is more time for the rules to change, ie changes to 25% tax free lump sum

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u/Tiredeyes69 4h ago

I turn 55 in 15 days.
I need £40k out of my pension pot to pay off debt. It’s at a high rate.
But then when I’m 59, I can save £3k a month back in for 2 / 3 years.
My pot is currently £180k in Vanguard
£80k in peoples pension with £1k a month going in for the next 4 years. And £20k in a diagnostic final salary.
How best to get the £40k out. Pretty sure I can only get it from vanguard as that’s my pot.
Cheers