14th October 2019

Prudential: The evolution of age 75

Your 75^th birthday is fixed when you’re born. But in the pensions world it’s changed a lot. 

Let’s concentrate on money purchase arrangements and cast our minds back to pre-simplification days. Then, almost everyone had to secure a pension by their 75^th birthday. 

Pension Simplification 

Drawdown in those days was called unsecured pension (USP), and if your weren’t already in it immediately prior to your 75^thbirthday, then you were deemed to be. Post A-day there was still requirement to secure a pension, so at 75 you secured your pension as an Alternatively Secured Pension (ASP). Secured being a bit of a misnomer, as there was no guaranteed income purchased. It was unsecured pension with more restrictive limits and other riles. Tax on death could be 82%. 

To read the full article, click here.

Pensions