Israeli education.
I'm wondering at what age do students no longer use nikud to read. I've been told 2nd grade and yet I have a book with nikud that someone else told me her son used in school who is much older. Can anyone put this to rest for me? Thanks.

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what do you mean by nikud sorry?

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It depends. Probably on 2nd grade it would be very difficult to read without nikkud, but on 3rd grade and on it's much more possible. However, I still had read books with nikkud on 4th and even 5th grade. 
Nevertheless, I was able to read the first Harry potter book, which has no nikkud, on 4th grade, although it wasn't easy.

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הילדים שלי למדו ניקוד רק בכיתה א

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As Omer has mentioned - at the first half of the primary school, and once you get used to it - the nikud only disturbs and distracts.
You still may find nikud in poetry and in religious texts like the Bible.

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The dots, dashes, etc. around the consonants.