The ABI is reminding financial advisers to check arrangements for clients that may be affected by the change to the National Minimum Pension Age. The minimum age changes from 50 to 55 on April 6 2010, with HMRC rules requiring pension benefits are set up by this date.
The change will affect people planning to access pension benefits who are between ages 50 and 55. Those who wish to access pension benefits must ensure their policies are set up in time, which means advisers need to act now to ensure applications are received by providers well in advance of the deadline.
The ABI has worked with pension and annuity providers to help coordinate the changeover and set a provisional cut-off date for applications. Advisers are urged to ensure applications for annuities or immediate vesting personal pensions (IVPPs) are received by the receiving provider as soon as possible or by 5pm on Monday 1 March 2010 at the latest. Applications received after this date will be processed on a best endeavours basis, but may not be processed in time.
Maggie Craig, the ABI’s Acting Director General and Director of Life and Savings, said:
“This is a very important change and it is vital that potential retirees have been notified. Details of the age change have been available for some time now. Advisers should be working towards concluding their client consultations and advice processes, to make sure applications for early retirement decisions are received as soon as possible, and by 1 March 2010 at the latest.
“Although provider transfer processes have been significantly improved recently, no chances should be taken. Advisers should act now and ensure applications are received as soon as possible.”
