Private pension increase from 55 in 2028?

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
100 replies 18.4K views
veryintriguedveryintrigued Forumite
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Has any firm legislation been put in place yet?

If so when in 2028 would this rise come into play? The first of Jan or the start of the new tax year in April?

Thanks in advance


  • NoMoreNoMore Forumite
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    I don't believe the legislation was ever enacted, it was announced but never followed through.

    Not to say that parliament may get round to enacting it at some point soon though.
  • hugheskevihugheskevi Forumite
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    [FONT=&quot]The following is how I understand the position. One poster (it could have been dunstonh, but I may be misremembering) mentioned the current government had re-affirmed the intention to increase the minimum pension age last year, but I couldn't find any references.
    [FONT=&quot]Under the Coalition govt back in July 2014, HM Treasury announced in a response to a consultation that minimum pension age would be linked to state pension age minus 10 years. It was stated that the change would be legislated for at a later date, which still has not happened.

    The consultation stated that the change would apply from when the State Pension age reached 67 in 2028 (which would be 6th March 2028). However, the lack of legislation means many details are left unanswered. The key outstanding questions are:[/FONT]
    • [FONT=&quot]Does the current government (which being a Conservative minority is a completely different government to that which made the decision to increase minimum pension age) intend to enact the policy change announced in the Coalition consultation response? As well as being a completely different government there are now many different priorities.[/FONT]
    • [FONT=&quot]If the change is legislated for, will the shorter time to the change taking effect mean the delay is put back to give people adequate notice to change their plans?[/FONT]
    • [FONT=&quot]Will the increase be a cliff-edge in 2028, or will the increase be tapered in, eg, starting in 2024, aligning with state pension age in 2026 and then tracking with the state pension age increase to 67 by 2028. In the original consultation it was stated "The transition to this age [57] will need to begin before 2028 and the government will provide further detail on this in its summary of responses to
      this consultation
      " However, there was no mention of this in the consultation response.[/FONT]
    • [FONT=&quot]Will protection be given, as it was when minimum pension age last increased in 2010, for those with existing pension arrangements at a particular date (eg July 2014, after which anyone starting a pension could reasonably expect a minimum pension age of 57+)?[/FONT]
  • veryintriguedveryintrigued Forumite
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    Thank you.

    Those who reach the age threshold between the 1st Jan and March/April date in 2028 will be hopeful should the consultation become legislation.
  • MarconMarcon Forumite
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    Useful article summarising where we are (written last year but sadly still current!):
  • SnakeySnakey Forumite
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    Interesting that they're going with "in 2028" with no reference to the asterisk part of the condoc where they said that it'd have to start before then so that they can transition it in.

    As somebody who will turn 55 in 2027, it goes without saying I'd prefer a cliff-edge in 2028 vs e.g. a two-year transition starting in 2026 - never mind the rest of you, I've got mine! But we should be wary of interpreting even an official statement in the same way that we would a piece of legislation. Just because he didn't specifically mention a transition, doesn't mean that having one would constitute a u-turn or whatever.

    In terms of getting off the fence in plenty of time for us to plan, I note that as far as the person quoted in that article is concerned, the 2014 condoc basically was our advance notification. Not that there has ever been a guarantee for a minimum level of notice when it comes to private pension changes.
  • veryintriguedveryintrigued Forumite
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    So in four years it's just been kicked in the long grass it seems.

    Trying to set a balance between responsible planning for the future and not flagging this change again such that it gathers momentum is tricky!
  • PParkaPParka Forumite
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    I’m hoping this will be clarified in the Budget at the end of October.
    I would be nice to know if I need to bridge the gap between 55 and 57 from savings.

  • Paul_HerringPaul_Herring Forumite
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    I would be nice to know if I need to bridge the gap between 55 and 57 from savings.

    Could plan to do that anyway and have a nice surprise pot of money if it turns out it won't be needed for that... (or allow you to retire at 53 instead.)
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
  • TerronTerron Forumite
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    A change to make pensions worse for people in the future is not going to be popular. Labour would immediately promise to scrap it. So it would have no effect other than to lose the Conservatives votes. I doubtHammond would be stupid enough to announce it. It is the sort of change that is only likely to be announced in the first budget after an election.
  • dunstonhdunstonh Forumite
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    The Treasury, less than 12 months ago, verified it is still coming.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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