The government has confirmed its intention to increase the normal minimum pension age from 55 to 57, with effect from 6 April 2028. The timing of this change coincides with the change in State Pension Age to 67, which applies from the same date.
The changes affect all registered pension schemes, except for the uniformed services pension schemes, including the various firefighters, police and armed forces public service pension schemes.
Announcements were made on 20 July 2021, including a response to a consultation and draft legislation (see below).
The proposals include transitional protection arrangements; some schemes will retain their normal minimum pension age of 55 for existing members and those joining before 6 April 2023, depending on the particular pension scheme rules which were in force on 11 February 2021.
Our legal advisers have confirmed that the Minerva SIPP scheme rules, which also govern SIPP Lite plans, provide an unqualified right to retire at age 55, and therefore existing and new members who join before 6 April 2023 will be able to take their benefits under the scheme from age 55. They will be able to add further funds and transfers into the scheme, which will also be available from age 55. For those joining after 5 April 2023, their minimum pension age will be 57.
Note that this information is based on our understanding of the proposed changes which were announced on 20 July 2021, which may alter in future. Customers should speak to their financial adviser before making any decisions based on this information. InvestAcc does not provide financial advice.
You can read more here: https://www.gov.uk/government/publications/increasing-the-normal-minimum-pension-age-for-pensions-tax/increasing-the-normal-minimum-pension-age-for-pensions-tax
Consultation response: https://www.gov.uk/government/consultations/increasing-the-normal-minimum-pension-age-consultation-on-implementation
Draft legislation: https://www.gov.uk/government/publications/increasing-the-normal-minimum-pension-age-for-pensions-tax
September 27th, 2021
The Minerva SIPP can invest in a wider range of assets including commercial property and land, on an individual or group basis. Any combination of permitted investments may be made within a Minerva SIPP including deposit accounts, DFM, open market platform/wrap accounts, stockbroker accounts and trustee investment plans, all held together within the same SIPP.
SIPP Lite is a lower cost option, for those that do not require multiple investment accounts, or access to commercial property and land at outset. SIPP Lite members are restricted to a maximum of one investment account, to run alongside the default SIPP bank account. This investment account could be another bank account or ONE of the following: stockbroker account, DFM, open market platform/wrap account or a trustee investment plan. For individuals that require additional investments at a later date, including commercial property and land, they can upgrade their SIPP Lite plan to a Minerva SIPP.
A Small Self-Administered Scheme (SSAS) is a type of UK registered pension scheme. Each SSAS is governed by its own trust deed and rules and is a separate legal entity to the sponsoring employer. The sponsoring employer establishes the SSAS and invites members to join. Any individual employed by the sponsoring employer (or a participating employer) may join the scheme and all members are appointed as trustees alongside the professional trustee. SSAS trustees have a very wide range of investment options, including the ability to make secured loans to the sponsoring employer of up to 50% of the net asset value of the scheme, subject to certain conditions.
We have been operating in these markets for over 20 years. The SSAS business was formed in 1997, and in 2003 we launched our flagship product, the Minerva SIPP. The range is completed by SIPP Lite, which has been available since July 2012.
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