Pension access age changing from 55 to 57?

greenglide

I personally think that it will go up to 60.

I can see a certain logic in having the pension age and the LISA age being aligned at 60 (initially) and linked to a common SPa offset.

So that won't happen!

jamesd

audi321 wrote: »

Madness.

Yes, since what it does is force more early retirement money out of pensions to options where it's available when required.

It's not purely madness because part of the policy objective is likely to be to trap those who don't plan ahead into retiring later than they want to.

Malthusian

greenglide wrote: »

I can see a certain logic in having the pension age and the LISA age being aligned at 60 (initially) and linked to a common SPa offset.

LISAs will probably have gone the way of CTFs and TESSAs and been merged into traditional ISAs by 2028 or thereabouts, to save the government the admin of penalties and age checks on a few footling thousand quids' worth of savings. [FONT=&quot]([/FONT][FONT=&quot]←[/FONT] baseless speculation) In my opinion the government will stick with State Pension Age minus ten years, which will soon be 60 anyway.

It is probably best to assume that your pensions are for retirement, ISAs and unwrapped investments are for early retirement.

The Government wants people to draw their pensions when they are no longer able to work, not when they can work but don't want to, because of the risk they spend all their pension and fall back on the State. At the moment, with pension access being allowed in mid-to-late middle age, 12-13 years before the State Pension, there is plenty of scope to use pension savings for early retirement. After pension freedoms in 2014, we are due a swing back of the pendulum. And as it swings back it is likely to hit people who were assuming they could retire early and live off their pension money (like Silvertabby's redundant colleagues). If you are planning to stop work well before the date the government thinks you should, I would say non-pension savings are near essential.

Anonymous101

Malthusian wrote: »

LISAs will probably have gone the way of CTFs and TESSAs and been merged into traditional ISAs by 2028 or thereabouts, to save the government the admin of penalties and age checks on a few footling thousand quids' worth of savings. [FONT=&quot]([/FONT][FONT=&quot]←[/FONT] baseless speculation) In my opinion the government will stick with State Pension Age minus ten years, which will soon be 60 anyway.

It is probably best to assume that your pensions are for retirement, ISAs and unwrapped investments are for early retirement.

The Government wants people to draw their pensions when they are no longer able to work, not when they can work but don't want to, because of the risk they spend all their pension and fall back on the State. At the moment, with pension access being allowed in mid-to-late middle age, 12-13 years before the State Pension, there is plenty of scope to use pension savings for early retirement. After pension freedoms in 2014, we are due a swing back of the pendulum. And as it swings back it is likely to hit people who were assuming they could retire early and live off their pension money (like Silvertabby's redundant colleagues). If you are planning to stop work well before the date the government thinks you should, I would say non-pension savings are near essential.

I absolutely agree.
I'm planning on retiring in around 15 years (currently 36 years old) and as much as it currently gripes me I'm paying 40% tax on earnings I could be saving into a pension and saving it in an ISA. This is purely because I don't think the pension will be available to me for the first 8-10 years of my retirement.
If by some outrageous fluke it is then I'll begin to backfill the pension as I approach my retirement numbers.