Increase in pension age from 55 to 57

MoneyGeoff

Hi,

Does any one know the date on which the pension age will increase from 55 to 57 for personal pensions, or if it will gradually phase in?

Supposing the cutover date is 05/04/2028 and I turn 55 on 02/04/2028, does that mean I'd have a 3 day window to retire?

If I decided not to start drawing my pension within those 3 days, then the next earliest opportunity would be two years later on 02/04/2030. Does that make sense or am I not understanding this correctly?

Thanks!

atush

i think I would wait for it to be law then plan then?

but it sounds like you would be ok by 3 days.

hugheskevi

A footnote in the consultation says:

"The transition to this age will need to begin before 2028 and the government will provide further detail on this in its summary of responses to this consultation"

So the person you describe would have a minimum pension age of almost 57 based on the information given so far.

And the consultation also asks:

"Should the minimum pension age be increased further, for example so that it is five years below State Pension age?"

So planning should indeed wait until decisions are taken.

MoneyGeoff

OK Thanks for the info.

Proxy

hugheskevi wrote: »

A footnote in the consultation says:



So the person you describe would have a minimum pension age of almost 57 based on the information given so far.

And the consultation also asks:



So planning should indeed wait until decisions are taken.

I had noticed the same. How much fun it'll be when people find out they can't take anything until 63/65.

If it happens.

MoneyGeoff

I think they will end up aligning private pension age with state pension age (either 5 or 10 years less) so from 2028 both age limits will likely be phased like the SPA timetable.

I was hoping that prior to 2028 the private pension age would not be phased. It wasn't last time, it went from 50 to 55 on the day, so people were able to swoop in and crystalize to give themselves the flexibility of access to their pensions any time after age 50.

Oh well, it's all guesswork as you say. Will have to wait and see.

gadgetmind

Note that the full 54 page document gives the 2028 date but then contradicts itself.

"3.33 It is important to recognise that the age at which you can take your pension savings under the current rules differs depending how you plan to access them. For example, if you want to buy an annuity, you are able to do so from age 55 (subject to your pension scheme rules). However, if you have total pension savings below £18,000 and want to take these savings as a lump sum you have to wait until age 60. Under the new system, people will be able to access their defined contribution savings from age 55 in all circumstances, rising to 57 in 2018."

My best guess is it's a typo but there could also be hidden complexities that can't be covered in 54 pages.

MoneyGeoff

Yes I'd say the 2018 is a typo, it should be 2028.

The 2028 is still misleading though, they mean to say the move to 57 will be completed by 2028. As hugheskev says, the small print states that it will start to increase prior to 2028

charliehell

I'm 55 in 2015, this new age rise scam won't affect me..or will it?

Proxy

MoneyGeoff wrote: »

Yes I'd say the 2018 is a typo, it should be 2028.

The 2028 is still misleading though, they mean to say the move to 57 will be completed by 2028. As hugheskev says, the small print states that it will start to increase prior to 2028

Basically shows how hastily written this whole thing was.

kidmugsy

charliehell wrote: »

I'm 55 in 2015, this new age rise scam won't affect me..or will it?

No, you are far too decrepit for it to affect you.