Under the current pension rules, if you are over the age of 55 you can choose how and when you access your retirement savings. Data published by HM Revenue & Customs in January, showed that almost £33 billion has been withdrawn from pensions since the introduction of the Pension Freedoms Act 2015*.
The British Government have now confirmed that from the year 2028, the minimum private pension age will increase from Age 55 to Age 57. This is the same year that the state retirement age will increase to age 67, maintaining the 10-year differential between minimum pension age and state pension age.
This announcement was first made back in 2014 and is not yet legislation but it has now been readdressed by MP Stephen Timm’s and Economic Secretary to the Treasury, John Glen, last Wednesday.
In response to the question asked by Timm in parliament, Glen stated:
“In 2014 the government announced it would increase the minimum pension age to 57 from 2028, reflecting trends in longevity and encouraging individuals to remain in work, while also helping to ensure pension savings provide for later life.”
This will mean that anyone aged 47 and under will not be able to access their pensions for an additional two years.
Responding to the Pensions Director, Steven Cameron from Aegon Life & Pensions commented on the announcement:
“The government did indicate back in 2014 its intention to do this, but didn’t include provisions in legislation, leading to uncertainty over whether the change was still planned. It will be particularly impactful on those who were due to reach their 55th birthday just after the cut off, sometime in 2028.”
Find out more information on the announcement here: https://www.moneymarketing.co.uk/news/govt-confirms-minimum-state-pension-rise-to-57-from-2028/
If you are concerned that your retirement plan may be affected by this announcement and wish to seek financial advice regarding your retirement or investment provisions, please do not hesitate to contact Informed Financial Planning on 01482 219325 or at [email protected].