Case study - UK - Bridge to the SIPP

[cerat0n1a]

The danger is they might push it on a couple more years... thats my worry.  So 57 now but then faff with the legislation for a few more years then when we get to say 2023 they say ah yeah after consideration we will push it to 59 and boom in 2025 they kick it in.

I will only be confident of whats happening once they new regulations are passed.

Every previous change has had many years of warning. Importantly, there's no political capital in it - it's not like the treasury benefits in some way by some people not being able to access their pension for a bit longer. Pension tax reliefs cost the treasury money; allowing you access to that money doesn't cost them anything.

[daverobev]

The danger is they might push it on a couple more years... thats my worry.  So 57 now but then faff with the legislation for a few more years then when we get to say 2023 they say ah yeah after consideration we will push it to 59 and boom in 2025 they kick it in.

I will only be confident of whats happening once they new regulations are passed.

Every previous change has had many years of warning. Importantly, there's no political capital in it - it's not like the treasury benefits in some way by some people not being able to access their pension for a bit longer. Pension tax reliefs cost the treasury money; allowing you access to that money doesn't cost them anything.

Well in theory, you're wrong - a SIPP is deferring taxes. If your rate going in is the same as your rate coming out, no difference.

Now, of course, if you pay in while you're paying higher taxes and take it out when paying little to none, it's a different story. The flip of that is... actually I don't know what happens on death? In Canada for example it can be quite painful - say you save into your RRSP (sort've equivalent to SIPP) at average 20% tax rate, amass a million, then die - that million comes out of the RRSP wrapper all at once and will end up being taxed at a very high rate indeed.

In that sense the govt wants you to keep the money in the wrapper longer so you pay more tax on it when it comes out! But, as I say, I don't actually know what happens in the UK.

Plus, you're also not wrong because there are stupid ways to increase the amount in your SIPP at the government's expense (salary sacrifice - avoiding NI contribs).

[cerat0n1a]

My assumption is the government cares about stuff that brings in tax today, and doesn't care very much about taxes years in the future. Tax relief on money going into pension costs them money. People accessing their SIPP a couple of years earlier doesn't - in fact it potentially brings some tax revenues forward. For a politician, you potentially upset some people, while at the same time, not really creating any winners or new revenue.

Tax on inheriting pensions is complicated - https://www.gov.uk/tax-on-pension-death-benefits

Inheritance tax is rarely paid on pensions. There's a legal nicety whereby who inherits the pension is at the discretion of the fund; they promise to consider your wishes but make the decision themselves. That means inheritance tax is avoided, but (almost always) the nominated person gets the pension pot.

[daverobev]

My assumption is the government cares about stuff that brings in tax today, and doesn't care very much about taxes years in the future.

I'd hope that this is categorically untrue. Sadly I expect you're closer to correct than incorrect. Alas for our children.

[PhilB]

As Cerat0n1a says, pensions on death can be complicated.  The key thing though is that they are outside the estate for inheritance tax purposes.  The 'standard' case is that whoever inherits the pension pot is taxed on anything they withdraw from it as normal income (although no NI).  There are all manner of complicating factors, but generally these make the situation better rather than worse for the inheritor.

This new system replaced the old one of a flat 55% 'death tax' on pension balances for anyone dying over age 75 fairly recently.  I am sceptical about how long it will last once there start to be visible numbers of people with nice inherited pensions as a form of dynastic wealth.

I believe the government has two main reasons to want to raise the pension access age.  Firstly to stop people blowing their savings too early and being a burden on the state and secondly to keep people working in the economy for as long as possible.

[Playing with Fire UK]

I believe the government has two main reasons to want to raise the pension access age.  Firstly to stop people blowing their savings too early and being a burden on the state and secondly to keep people working in the economy for as long as possible.

I very much agree with this. There is also a danger that if people have the impression that they are "always meddling with pensions", workers are less likely to save into pensions and instead to blow income on trinkets so end up being a burden on the state anyway.

[never give up]

I’m hoping the Monevator series we mentioned at the start of this thread concludes at some point. The last part is meant to refer to the concept of ‘liability matching’ if the bridge to the SIPP is eight years or less. Given today’s news below it’s now almost impossible to find something relatively ‘safe’ to park some cash and at least try to keep up with inflation, without investing in more volatile assets.

https://www.moneysavingexpert.com/news/2020/09/premium-bond-prize-rate-to-be-slashed-to-1-/

[Playing with Fire UK]

I’m hoping the Monevator series we mentioned at the start of this thread concludes at some point. The last part is meant to refer to the concept of ‘liability matching’ if the bridge to the SIPP is eight years or less. Given today’s news below it’s now almost impossible to find something relatively ‘safe’ to park some cash and at least try to keep up with inflation, without investing in more volatile assets.

https://www.moneysavingexpert.com/news/2020/09/premium-bond-prize-rate-to-be-slashed-to-1-/

And the last post appears as if by magic! Well done on summoning it. The cash/low volatility question is so tough for pre-pension spending.

The key question for surviving a market crash is the length of time that you risk cannibalising the equities portion of the stash if you blindly withdraw income without replenishment. Having the ability to fund spending from cash, to cut spending or to work all reduce the risk to the stash. Finding or keeping work is harder during a recession, so can't be relied on immediately. Having a few years worth of spending in cash seems the right balance for me. I accept that the cash will be a drag on overall return, and that inflation will reduce the spending power of the cash, but that seems an acceptable price.

So the questions are how many years of cash and how to decide when to spend from cash and when to sell equities in decumulation. Three years' cash sounds about right for me. Does anyone have any thoughts on guidelines for when to inflate the cash air bag? I think I'll know when I see it.

Does a cash cushion work for a shorter bridge to the pension? It seems more efficient than being 100% cash and minimises most of the risk of 100% stocks. It would be a higher percentage of the overall pre-pension stash than for a longer bridge but this doesn't seem like a deal breaker.

[never give up]

It was magic Playing with Fire UK! I’m glad the series is complete. It’s a good body of work to help people. There are other ways of doing it of course, and people’s individual situations are different but it is still very helpful.

As I was a late ISA Investor the fact I can save less with the liability matching approach is attractive, plus not having to worry about volatility. I had always thought that between regular savers and chasing the best cash rates, this would be sufficient to cover my personal inflation rate. I now doubt this. So I can see the logic in saving extra to cover inflation beforehand.

I can see the value of having seven years worth in cash with the liability matching approach or three years as you say alongside a normal invested stash.

So the questions are how many years of cash and how to decide when to spend from cash and when to sell equities in decumulation. Three years' cash sounds about right for me. Does anyone have any thoughts on guidelines for when to inflate the cash air bag? I think I'll know when I see it.

I think I would want to start increasing the cash from five years out but that’s not based on any evidence.

Does a cash cushion work for a shorter bridge to the pension? It seems more efficient than being 100% cash and minimises most of the risk of 100% stocks. It would be a higher percentage of the overall pre-pension stash than for a longer bridge but this doesn't seem like a deal breaker.

I thought ERN’s series looked at this in one of the posts. I think some people don’t count the three years cash as part of their stash, so it was essentially an additional pot.

The link to all six parts of the Monevator series is below for those that don’t know the reference.

https://monevator.com/tag/ISA-pension-split-series/

[Playing with Fire UK]

ERN's cash cushion challenge and safe withdrawal rate series for those interested. ERN raised some problems with how people think about a cash cushion, but I think it's a useful addition for my plan.

The low interest rates now are a problem, but they won't necessarily stay forever. We are luckier than old-age retirees as we have much more choice in deciding that it is FIRE time: we don't have to worry about turning 65 and being turfed out of our jobs on the eve of a giant financial crash.

[Playing with Fire UK]

Update time!

Previous numbers:

Numbers - 2020
Age then: 36
Total Pensions (mostly SIPP or DC): £300k
ISA, GIA, Cash:                                 £280k
"Mortgage* GIA":                             £120k
Mortgage:                                       -£115k

Spending then (per month):
Mortgage:            £500
Household bills:   £1200
Solo Travel:         £100
My Spending:      £100
(Commuting, charity, work clothes and drinks £1200)

Numbers now (2022)
Pensions: £310k plus a small DC pension valued around £40k (total)
ISA: £115k
GIA: 380k
Mortgage: £175k (I finally got my interest only mortgage! 1.1%!)

Spending is broadly the same. Covid made a mess of my tracking, so last year's numbers don't mean anything (they were lower than 2020 values but no holidays). Mortgage is lower but energy bills are higher. Supermarket shops are definitely creeping up. Commuting costs have reduced significantly!

We have just moved to a new house, so I'm not entirely sure what the costs are going to be. And inflation is ramping up. But I'm thinking of quitting anyway.

Total (available) stash is £535k, spending around £23k, so a 4.3% WR for about 20 years then a pension top up, but the pension top up needs to pay off the mortgage as well (I'll have time to take advantage of several years' personal allowance if needed, or I can take some lump sum if that still exists).

What do you think? Have I missed anything? Now feels like a bad time economically to be FIREing but I figure everyone feels like that don't they?

Edited to add: Decision now made! Very happy to hear thoughts that I can action such as asset allocation or withdrawal strategy but not OMYing or going back to work just now thank you!

[never give up]

That’s funny Playing with Fire UK, I was just reading this thread the other day and wondering how you were doing.

Congratulations on getting your mortgage and new house! I know you were passionately exploring options here and were being frustrated at every turn, so that’s great you made it happen.

When I think of what the world has been through the last couple of years it’s amazing to me our numbers are actually up! The Monevator Pension Split series we referred to on here suggests a 4-4.5% WR for 20 year periods. For periods of less than 20 years the series suggested that a lower proportion (30%) needs to be invested in stocks too. I’m not sure how that fits with the mortgage approach though as I assume you will have a higher stocks allocation for this to make sense.

With uncertainty over inflation, markets, the mortgage, & future health expenditure I would be far too cautious to FIRE, but thank goodness everyone isn’t like me! I know you’ve said you are both capable of doing your own maintenance and I can’t remember if SO was intending on working or not longer term, but you’re certainly in a great position. I guess there is a big difference in the ‘numbers must work’ versus ‘it’s ok if I have to get a part time job for a bit at some point during the 20 years’.

So I guess I’d be asking myself:

1. How much flexibility will I have in the £23k spend and is that just your share or does it cover you both?
2. Am I prepared to work part time at some point or not?
3. What would I do about the mortgage if the 25% lump sum didn’t exist in 20 years?
4. Am I happy the state pension will keep up with inflation?

And then I’d definitely need a lie down!

Your grasp of all things FIRE and your expertise with personal finance puts you in a great position so don’t listen too much to all my caution. Hopefully other posts will balance out my cautiousness!

Well done on getting yourselves in such a great position and it’s a great time of the year to FIRE!

[daverobev]

With inflation doing what it is, I have to ask - is that a fixed rate mortgage, or variable, and how long for? If you pull the plug now you won't be able to move to a different mortgage co. If rates go up to 7, 8, 9% (and house prices fall 30%), how does that leave you?

I think pushing above 4% even for only 20 years requires a good chunk more cash and cash-like investments, else a 'lost decade' is going to hurt you a lot.

Plus there is always the fear of government tinkering with pension stuff.

If you can reduce your spending at need down to £18k I'd say you're ok, at least having that option - and just see how things go over the next 3, 4 years. If markets go up 10% a year then you're fine. If markets drop 20% you can go back to work.

[former player]

I think we're probably safe from radical pension tinkering for a number of years because of the pandemic - life expectancy is down and pension payments are down even more because significant numbers of pensioners have died.   The demographic pressure towards change has been lifted for a number of years, and given the long lead times for both decision-making and implementing changes I'd say that anyone within 15 to 20 years of current pension age is pretty safe- barring the sort of financial and environmental collapse which is beyond planning for in any case.

[Playing with Fire UK]

That’s funny Playing with Fire UK, I was just reading this thread the other day and wondering how you were doing.

Congratulations on getting your mortgage and new house! I know you were passionately exploring options here and were being frustrated at every turn, so that’s great you made it happen.
...
So I guess I’d be asking myself:

1. How much flexibility will I have in the £23k spend and is that just your share or does it cover you both?
2. Am I prepared to work part time at some point or not?
3. What would I do about the mortgage if the 25% lump sum didn’t exist in 20 years?
4. Am I happy the state pension will keep up with inflation?
...
Well done on getting yourselves in such a great position and it’s a great time of the year to FIRE!

Hi never give up!! Big, two-arm waves to you!!

Yes, we were so sure that we didn't need to move but then SO saw this house and fell in love with it. If we'd have known that we were going to move it would have made the mortgaging so much easier. Never mind though.

What sensible questions!
1. The £23k is pretty lean, but it includes all of our joint household costs plus my personal costs. SO has a magical job that is enjoyable (apparently, I can't imagine such a thing existing), does good and has reasonable hours so will continue to work for now, but not forever. This probably provides the bulk of the safety margin
2. I might be able to do some contracting in my current field, obviously there is no guarantee that it would be available exactly when I needed it and probably if I waited 10 years it'd be a lot more difficult to jump back in. I'd be okay working when weather was bad but have very little interest in being stuck inside on lovely days.
3. So, I'm keeping a high percentage of stocks and hoping to maintain the pre-pension stash rather than deplete it over 20 years by switching to cash. So I'd only be out of luck on repaying the mortgage if I had poor sequence of returns AND couldn't do some work to maintain the stash AND lost the 25% pension lump sum.
4. I really don't know about inflation, obviously I benefit on the mortgage if inflation is high but lose if wages and costs increase far ahead of investment growth. The government approach to pensions is such an unknown!

It was a lovely time to FIRE or FART last week! We currently have snow and hail so let's hope that we have a decent summer!

[Playing with Fire UK]

With inflation doing what it is, I have to ask - is that a fixed rate mortgage, or variable, and how long for? If you pull the plug now you won't be able to move to a different mortgage co. If rates go up to 7, 8, 9% (and house prices fall 30%), how does that leave you?

I think pushing above 4% even for only 20 years requires a good chunk more cash and cash-like investments, else a 'lost decade' is going to hurt you a lot.

Plus there is always the fear of government tinkering with pension stuff.

If you can reduce your spending at need down to £18k I'd say you're ok, at least having that option - and just see how things go over the next 3, 4 years. If markets go up 10% a year then you're fine. If markets drop 20% you can go back to work.

Thanks @daverobev -  it's a brand new five year fix (locked in before the rate rise but started afterwards). As I understand it, the rules for getting a new mortgage product with the same lender are pretty straightforward as long as the account is in good standing. It's with a major mortgage lender so I'm hoping that they'll have a rate that is competitive to the rest of the market. It's 40% deposit, so a 30% crash wouldn't put it into negative equity but would be painful. If rates became eye-watering and seemed to be staying high I'd really consider paying the mortgage off and dealing with the stash shortfall with work. It would depend what rates where doing compared to inflation and stock growth. Even in 5 or 10 years time, I think inflation is going to do some damage to that £175k, so it might be less painful.

I see what you mean about a lost decade for stocks, but I'm too scared of inflation to go heavily to cash and I don't like how bonds are looking at the moment. I will have some cash to spend in a crash, hoping that will provide a bit of a cushion and avoid the brutal drawdown at the low point of the market.

Interesting that you say cut to £18k. We spent £17k and £17.5k the past two years and felt very comfortable with that, had plenty of treats and fun but no holidays. I'd be happy doing that if the markets crashed at the same time that job losses stopped SO's income (more likely in recession). That's reassuring. I'd rather maybe have to go back to work for a few years than work the years just in case.

You are so right about government messing with pensions, I don't see an easy way around that!

[Playing with Fire UK]

I think we're probably safe from radical pension tinkering for a number of years because of the pandemic - life expectancy is down and pension payments are down even more because significant numbers of pensioners have died.   The demographic pressure towards change has been lifted for a number of years, and given the long lead times for both decision-making and implementing changes I'd say that anyone within 15 to 20 years of current pension age is pretty safe- barring the sort of financial and environmental collapse which is beyond planning for in any case.

That's an optimistic (but dark!) way of looking at it. It's shocking that we have collectively undone progress on life expectancy and healthy life expectancy. I'm 18 years from hitting the 57 threshold and MIGHT have at least one occupational pension scheme that refers to 55, not "minimum pension age", so don't feel fully safe. Total safety is impossible and getting close is too expensive!

[never give up]

Waves back!

An enjoyable job! Who would have thought of such a thing :-) That’s a great position for SO to be in and a big safeguard for your approach.

I'd rather maybe have to go back to work for a few years than work the years just in case.

I think this is key really and an attitude that I wish I could embrace. It’s so much more positive than “I must achieve full completely safe FIRE now, or else I’m doomed, doomed I tell you and there will be no possible way of recovering ever”.

Given this though do you have a strategy for how you would assess if work was necessary and at what point? I guess the first five years of your twenty year period would certainly be crucial, but are you doing anything more scientific here or just using intuition and gut feel?

Yes a good summer would be a wonderful thing. I hope you can enjoy it in a lovely state of FIRE.

[Playing with Fire UK]

I really don't know how I'd make that decision. I liked the ERN SWR series and the way it refers to 'false positive' return to work, ie when it looks like the market has crashed and broken your strategy, but actually would have recovered if you'd not gone back. Of course leaving it too late means taking from a shrinking stash... Not easy.

I could really use a break right now. I don't want another summer stuck inside an office and if that means working a couple of winters in future then so be it. My thinking on this has evolved somewhat, or maybe I've become more impatient.

I'll keep you updated with any future panicking!

[never give up]

I like that approach Playing with Fire UK. With a working SO, flexibility with your spending and a willingness to potentially work in the future you’re right to prioritise your health now and take a break. New home, summer freedom, it’s all happening!

[sea_saw]

Maybe I'm just buoyed by a successful job hunt, but I like the idea of taking this summer off work and then seeing how you feel.

[Playing with Fire UK]

Maybe I'm just buoyed by a successful job hunt, but I like the idea of taking this summer off work and then seeing how you feel.

That's an excellent perspective! I can definitely get a new job before my money runs out (collapse of capitalism notwithstanding), so all I really need to decide is the next few months!

[PhilB]

I'd vote for taking the summer off, then deciding too.  You are in a great position.  If you looked at a distribution of possible outcomes, then the slice that would be turned from 'failure' to 'success' by working another year or two is probably very small indeed.

One thing I would definitely look to factor into my plans is getting up to a full state pension.  Have you worked out how many years NI contributions you are short and factored in the cost of paying them (about £800 a year for class 3).  The good news is that you can, on current rules, pay the last 15 years worth after you've accessed your DC pension funds (current year, 5 past years plus 9 full tax years in the 10 year period to SPA).

With a working OH limiting your scope for extended travel, I might be tempted to deliberately aim to do a bit of consulting for the first few years to a) get your NI stamp, and b) pay for some extra holidays, but that would depend an awful lot on how much you hate the work.  That approach would also have the benefits of keeping your skills / profile current in case the SHTF in the economy and giving you a smoothed transition to full on retirement, but horses for courses.

[Playing with Fire UK]

As of 05 April 2021, I was short 14 years, I'll get one from this tax year just ending, plus one from my notice period in 2022/23 so I'll be 12 years short with over 25 years to earn or buy years (or for the qualification requirements to change!) So I should be able to fill missing years after accessing my SIPP even if the date slips back a little.

I also have a contracted out amount, am I right that this is taken off my state pension amount and there's no way to reduce this by working extra years?

I hate parts of the work but not all of it. I generally enjoy the first few months of a job or the first parts of a project more than the long slog when the endless obligation of it all. I know that I can never know exactly how I'll find the transition to retirement but I don't think I'll need work to keep occupied.

[PhilB]

The contracted out amount just reduced your starting amount as of the April 2016 changeover.  You can still get to the full single tier pension, you'll just need more than 35 years stamp to get there.

As of 05 April 2021, I was short 14 years

If your statement said you needed to contribute for 14 more years to get full SP then that's all you will need.  If, OTOH you checked and you had 21 years at that point, then you'll need more than 14 more to make up for the contracted out amount.

[Playing with Fire UK]

Thanks PhilB! That's helpful, yes, it said I needed 14 more years and had a tracker that went up to around 178 per week and I'm currently at around 110 per week.

[Playing with Fire UK]

...And I've given notice. Still to confirm final dates but looking good for the start of July! Really looking forward to getting everything wrapped up and handed over. Thanks to everyone for your thoughts and questions!

[never give up]

Congratulations Playing with Fire UK! What a great milestone and incredible achievement.

[MarcherLady]

Congratulations! Enjoy your summer.

[Playing with Fire UK]

Thank you both! I'm very excited.

[PhilB]

Congratulations!  Sadly, that coincides with our family going on holiday so I'm afraid you'll have lousy weather!

[vand]

Echoing others, you have put yourself into a great position, and I think your approach of "not minding going back to work" is a great one.

What's your mortgage situation?
One thing to be wary about is that it can be difficult to switch mortgage if you don't have recognised employment. Additionally, because short term rates have risen more than long term rates, the spread between 2/5/10yr fixed mortgages has all narrowed, so if you are in a position to, it may well be worth fixing for 10yrs (imho - that would be my personal preference as of today).

edit: ok, just saw you have a new 5yr fixed. Pretty good deal.

[Playing with Fire UK]

Echoing others, you have put yourself into a great position, and I think your approach of "not minding going back to work" is a great one.

What's your mortgage situation?
One thing to be wary about is that it can be difficult to switch mortgage if you don't have recognised employment. Additionally, because short term rates have risen more than long term rates, the spread between 2/5/10yr fixed mortgages has all narrowed, so if you are in a position to, it may well be worth fixing for 10yrs (imho - that would be my personal preference as of today).

edit: ok, just saw you have a new 5yr fixed. Pretty good deal.

Yes, at the time I was looking 10 year seemed a lot more expensive than 5 year, but agreed that they've narrowed since. A new 10 year fix would be nearly 1% more plus around 5k of ERC. That may yet be a great deal but only the future will tell!

[vand]

I haven't looked that closely, but even quite recently you could fix for 10yrs still at around 2.3% or so. That hasn't changed very much at all from the 10yr rates that were available last summer, but 5yr rates have gone up considerably.. from around a best of 1.35% to about 1.95% now. If they keep going up at this pace then pretty soon the cheapest 5yr fixes will be above the best 10yr rates available today!

[MisterA]

Congratulations PWFUK, well done at such a young age.

I'm also in the 2022 cohort. Initially I was tentatively planning for March/April, as I was anticipating continuing good returns in 2022, but now I'm not sure if we're at the start of a bear market and I'm scared of a poor sequence of returns early on. So I've delayed and am now planning on about October, which gives more contributions (buying at a lower price) and an opportunity to see how the markets go. But, I'm not budging from 2022, and in the grand scheme of things a few more months is neither here nor there. It's just that with Ukraine, energy prices, inflation etc, a few months won't do any harm and they give me a few more options.

[Playing with Fire UK]

Congratulations PWFUK, well done at such a young age.

I'm also in the 2022 cohort. Initially I was tentatively planning for March/April, as I was anticipating continuing good returns in 2022, but now I'm not sure if we're at the start of a bear market and I'm scared of a poor sequence of returns early on. So I've delayed and am now planning on about October, which gives more contributions (buying at a lower price) and an opportunity to see how the markets go. But, I'm not budging from 2022, and in the grand scheme of things a few more months is neither here nor there. It's just that with Ukraine, energy prices, inflation etc, a few months won't do any harm and they give me a few more options.

Thank you! I totally agree with you that it seems like a scary time to be FIREing. It's good to know that there are a bunch of us to panic together. I slipped a little too: I was planning on February (so giving notice in November), but Covid uncertainty and the chance of a bonus kept me working another few months so I'll get to FIRE into the best (or worst) of summer weather. I reassure myself that there has always been something to be worried about when FIREing, so I hope that the future will be good to our cohort.

[Brit71]

The danger is they might push it on a couple more years... thats my worry.  So 57 now but then faff with the legislation for a few more years then when we get to say 2023 they say ah yeah after consideration we will push it to 59 and boom in 2025 they kick it in.

I will only be confident of whats happening once they new regulations are passed.

Every previous change has had many years of warning. Importantly, there's no political capital in it - it's not like the treasury benefits in some way by some people not being able to access their pension for a bit longer. Pension tax reliefs cost the treasury money; allowing you access to that money doesn't cost them anything.

Just as a quick update to get rid of any confusion or anxiety from anyone reading this, but I've had a quick look and there seems to be more (not total) clarity than there was.  I've taken from here:

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

Basically if you turn 55 before 6 April 2028 (so if you were born on or before 5 April 1973) then you can start taking your pension benefits out.  There will be some transitional arrangements for those between 5 April 1971 and 5 April 1973 - this includes me - who have "started but not completed" taking out their benefits and don't have a "Pre Existing Pension Age" will be under transition rules.  However these are not clear.  Personally I'm quite relaxed about this as I suspect that they will be relatively lenient, but I can't find anything.

One thing that is important to note is that there is some stuff out there (including the Which? website) that is saying that there is an ability to transfer a pension pot before 2023 to access the pension before 2023.  This was closed:

https://www.thisismoney.co.uk/money/pensions/article-10165143/Government-u-turn-rules-pension-age-rise-55-57-2028.html

All of this is my understanding, if you're on the borderline do some additional research.  Happy to be corrected.

[Brit71]

The danger is they might push it on a couple more years... thats my worry.  So 57 now but then faff with the legislation for a few more years then when we get to say 2023 they say ah yeah after consideration we will push it to 59 and boom in 2025 they kick it in.

I will only be confident of whats happening once they new regulations are passed.

Every previous change has had many years of warning. Importantly, there's no political capital in it - it's not like the treasury benefits in some way by some people not being able to access their pension for a bit longer. Pension tax reliefs cost the treasury money; allowing you access to that money doesn't cost them anything.

Just as a quick update to get rid of any confusion or anxiety from anyone reading this, but I've had a quick look and there seems to be more (not total) clarity than there was.  I've taken from here:

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

Basically if you turn 55 before 6 April 2028 (so if you were born on or before 5 April 1973) then you can start taking your pension benefits out.  There will be some transitional arrangements for those between 5 April 1971 and 5 April 1973 - this includes me - who have "started but not completed" taking out their benefits and don't have a "Pre Existing Pension Age" will be under transition rules.  However these are not clear.  Personally I'm quite relaxed about this as I suspect that they will be relatively lenient, but I can't find anything.

One thing that is important to note is that there is some stuff out there (including the Which? website) that is saying that there is an ability to transfer a pension pot before 2023 to access the pension before 2023.  This was closed:

https://www.thisismoney.co.uk/money/pensions/article-10165143/Government-u-turn-rules-pension-age-rise-55-57-2028.html

All of this is my understanding, if you're on the borderline do some additional research.  Happy to be corrected.

Because I fall under the change I asked my stockbroker about accessing my SIPP:

Our technical team have confirmed the following:

If the scheme member turns 55 before 6 April 2028 then they can access their pension benefits.

From 6 April 2028 the normal minimum pension age will increase to 57, therefore in order to crystallised pension benefits from that point
onwards the scheme member would need to be 57 or older.

In terms of the transitional arrangements, if there are any funds in drawdown then these can continue to be withdrawn after 6 April 2028
even if additional funds cannot be crystallised.

Worth noting that HMRC are yet to publish their guidance on this so the stance may change once they have provided additional details
on their intentions with the transitional arrangements.