Age at which you can access tax free lump Sum

gil13

My brother was born in Feb 1973 and has private pension he has been paying into. He cant seem to find a definitive explanation about the minimum age - apart from 2028 being a date when it will rise to age 57. He is right on the cut-off date if this is the case as would be 55 in 2028 (current access age is 55 years old).
What date would the increase to age 57 be done on? Jan 1st or tax year in April? Wonder if anyone could help answer this question - sorry it if it has been covered before.

atush

AFAIK, that increase in commencing a PP until age 57 is not yet law. I t remains at 55 at this time.

But may well increase in future. and when it is written in, the start date might change, but most things seem to art on April 6th of a given year.

kidmugsy

I'd be astonished if they used Jan 1. April 1 is also unlikely as it's a personal finance matter, not a company matter. So April 6th would be my bet.

greenglide

will be 66 by 2020 so they "might" move it then (and they might not).

The move to 67 could be done as a rolling move at the same time as the SPa changes from 6/4/2026 to 6/4/2028.

We certainly cannot know yet.

Triumph13

Whilst nobody yet knows how and when it will be done, the odds are heavily against it being an instant change from 55 on one day to 57 the next. It is far more likely to be a phased rise - such as going up by one month per month over a period of 2 years. As to when such a period will start and how fast it will rise over that period, that is anybody's guess.

AnotherJoe

Isnt it a bit early to be worrying about this? Dates could easily change over the next twelve years. Multiple governments, lots of financial crises to come, etc.

I'd say he should plan for it being 60 and anything less is a bonus.

Snakey

The consultation response did say "in 2028" and not "by 2028" which does imply an overnight rise, but my guess would be that when they come to draft the legislation it'll be transitioned in over a period of time ending in 2028 and that's going to be bad news for your brother (and me).

I did read something saying that they weren't going to mess with the State pension dates up to 2028, which (together with the decision to keep the gap at ten years) would indicate that no matter what happens we'll be able to take private pensions at 57, but none of this is binding even on the current Parliament never mind a future one.

I'm grumpily planning for 57, and hoping that it won't be that late. (I was secretly hoping for Pension ISAs to come in, in the hope that they might only peg those to a higher retirement age and quietly leave the current funds alone. One advantage us early-40s people do have is that we're about the same age as the average MP.)

ffacoffipawb

Triumph13 wrote: »

Whilst nobody yet knows how and when it will be done, the odds are heavily against it being an instant change from 55 on one day to 57 the next.

The jump from 50 to 55 was thus.

Up to 5 April 2010 the minimum age was 50.

From 6 April 2010 it was 55.

A bit unfair but it was a Labour Government, which was clueless.

westv

I'll be 55 in two years so pull up the ladder, I'm alright jack. :beer::D:D

Snakey

lol, I'd laugh like a drain if it was in Wednesday's budget...

bigadaj

ffacoffipawb wrote: »

The jump from 50 to 55 was thus.

Up to 5 April 2010 the minimum age was 50.

From 6 April 2010 it was 55.

A bit unfair but it was a Labour Government, which was clueless.

Why wasn't there a campaign?

A debate in Parliament perhaps?

A pressure group called something along the lines of What A Stupid Pension Increase could have been formed, possibly proposing to push the increase back to 2020 for example, thus saving all those people born in the 1960s such as me.