Pension rules

jd79

My wife, who works for a big bank is considering retiring at the age of 50 which is in 3+ plus years in Jan 2011. She will have completed 30 years with the company in June 2010. We have been told that because of new government rules she may not be able to take her pension until the age of 55. Can anyone throw light on this, please.

exil

Well, basically the situation is as she's been told. The goalposts have moved (as they have for my OH who's the same age).

It has to be said that it's likely that any pension she would have got would have been actuarily reduced, as 30 years retiring at 65 is not the same as 30 years retiring at 50, as you are likely to live 15 years longer ie would expect 35 years on pension instead of 20. This depends on the scheme rules, employers are free to boost pension entitlements if they are feeling generous.
My own scheme just doesn't allow for voluntary early retirement before 60, full stop.

dunstonh

From 2010, the minimum age to commence pensions is being increased to 55.