Changes to the minimum retirement age for a registered pension scheme, which will increase from 50 to 55 from 6 April 2010, must be considered now by self-invested personal pension (SIPP) and small self administered schemes (SSAS), says Premier Retirement Services.

The organisation is concerned that since the change will not be phased in, but will happen overnight, the reaction time is running out for these personal pension products.
"There's a whispering voice out there in the world of pensions that's going to get louder over the coming months," warned Nigel Manley, head of self invested pensions at Premier Pension Services.

Those who are over the age of 50 prior to 6 April but want to take their benefits before the age of 55 must review their circumstances, ensuring that they have started to receive benefits before midnight on 5 April 2010. Those aged 50 to 55 who are using phased retirement to take their benefits in stages should check that their pattern of vesting can continue after 6 April, or stop until their 55th birthday.

Pension funds invested in part or totally in With Profits with a selected retirement age between 50 and 55 should contact their provider to find out what their situation will be, and anyone wanting to make use of lifestyling products to manage risk in the run up to retirement, may need to rebalance their fund.

"Not all of the above situations will impact everyone but it is important that people consider the possible impact now and plan accordingly. We have already taken steps to engage the Adviser community and identify which of our clients might be impacted by the change and we will be writing to those concerned shortly," added Manley.

- Pensions Age August 2009

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