Retiring at 50 or 55

richiec

I understand that legislation will be introduced next April that will raise the minimum age for retirement from 50 to 55.
I'm 50 in March and am considering retiring early. If I decide to work on until I'm 55 is there a risk that the government will raise the minimum age again - ie. in the years before I reach 55 ?

Thanks in anticipation.

CLAPTON

Legislation has already been passed to raise the retirement age to 55 after April 2010.

Parliment can change the law at any time after due process.

dunstonh

Whilst Govt can change the retirement age, that sort of thing doesnt happen without consulatation and advance notice. The Finance act that involved the legislation that came into effect in 2006 took about 4 years to be developed. Then you had another 4 years before a change like that occured.

The usual sweeping up and closing of loopholes has already taken place in two finance acts passed since then and the next focus is on 2012 changes re the introduction of the Personal Accounts. Nothing has even hinted at a further increase in retirement ages.

When you consider that the Govt has already announced changes in retirement ages going through to 2044, its unlikely we will see any changes in age regarding getting older in the near future.

EdInvestor

richiec wrote: »

I understand that legislation will be introduced next April that will raise the minimum age for retirement from 50 to 55.
I'm 50 in March and am considering retiring early. If I decide to work on until I'm 55 is there a risk that the government will raise the minimum age again - ie. in the years before I reach 55 ?

Thanks in anticipation.

Depending on what kind of pensions you have, it may be possible to "technically' retire before the age change, so you meet the age rule, but actually stay at work and keep pension funds invested for use later. This would remove the risk of further change not to your advantage.