14 Oct 2019
Your 75th 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 75th birthday.
Drawdown in those days was called unsecured pension (USP), and if your weren’t already in it immediately prior to your 75thbirthday, 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%.
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