Private pension increase from 55 in 2028?

MoneyGeoff

veryintrigued wrote: »

It's back to my OP.

Yep so those that turn 55 in 2028 still don't know what their private pension age will be. Also, because tapering has been mentioned in the consultation documents rather than cliff edge, those turning 55 in 2027 or 2026 will probably find their private pension age will change. eg saying it will change to 57 in 2028 could still mean that it changes to 56 in 2027.

Given all the grief they get with pension age changes you'd think they'd be keen to announce it properly.

Paul_Herring

Also, because tapering has been mentioned in the consultation documents rather than cliff edge, those turning 55 in 2027 or 2026 will probably find their private pension age will change

But, we've been told 2028, not 2027 or 2026.

So that can't possibly what will happen...

MoneyGeoff

Paul_Herring wrote: »

But, we've been told 2028, not 2027 or 2026.

So that can't possibly what will happen...

No, we've been told it will change to 57 in 2028. That means it can start increasing any time before 2028.

The consultation said The transition to this age [57] will need to begin before 2028.

Therefore the pension age could be increased to 56 by 2027 if they start tapering it in, we don't know.

Paul_Herring

That means it can start increasing any time before 2028.

HL are very remiss in omitting to mention this salient fact then:

https://www.hl.co.uk/pensions

Then, from 55 (57 from 2028), you have the option to take money from your pension.

MoneyGeoff

I suppose HL are just sticking to the factual part (it's 55 now and will be 57 at some point in 2028) because nobody knows what will happen in between.

I just wish the government would pick a date and stick to it (and be clear on whether it's a cliff edge or not) so we can replan properly.

Malthusian

MoneyGeoff wrote: »

Yep so those that turn 55 in 2028 still don't know what their private pension age will be.

It is a fairly safe bet that the change will take effect on April 6, just as it did in 2010.

If there is no tapering, then if you turn 55 on April 5 2028 you will have one day to go into income drawdown, otherwise you will be locked out for two years.

This was how it worked when the minimum access age changed from 50 to 55 in 2010. There was a five year cliff edge, but as long as you were born on or before 5 April 1960 you could avoid going over the cliff edge by going into income drawdown. If you turned 50 on 6 April 2010 it was tough luck.

portf2014

I wonder how long it will take for the latest pension industry thinking to reach Govt and influence the strategy of pension age increases...

news.sky.com/story/a-lot-of-people-in-the-city-are-getting-very-excited-about-death-11665682?

(New user can’t post links )
:A

veryintrigued

http://news.sky.com/story/a-lot-of-people-in-the-city-are-getting-very-excited-about-death-11665682

hugheskevi

I wonder how long it will take for the latest pension industry thinking to reach Govt and influence the strategy of pension age increases...

Longevity research and changing trends heavily influenced the findings of the 2017 review of State Pension age, and 2023 is the date of the next review of State Pension age. There was some controversy over the use of a blend of both 2012-based and 2014-based statistics rather than relying only on the most recent 2014-based statistics in the Cridland review which informed Government decisions.

Changes following the last review, in 2017, were not implemented due to uncertainty about longevity which showed signs of increasing by less than expected at the time of the review. Some quotes from the report:

Given this uncertainty, the Government agrees with John Cridland that it is too early to set a formal timetable beyond age 68 at this stage. The Pensions Act 2014 provides a mechanism to ensure regular reviews of State Pension age so that changes are smooth, predictable and well-flagged in advance. The next review, which will conclude by 2023, will consider whether rises beyond 68 are needed and when.

The legislation provides for the next State Pension age review to be conducted by July 2023, which will confirm when State Pension age will increase to 68, and will allow for consideration of more recent life expectancy projections whilst ensuring adequate notice.

This is because recent decades have shown that life expectancy projections are uncertain, and more so over longer projection periods. John Cridland took account of both the 2012-based and 2014-based ONS life expectancy projections when making his recommendation on the timing of the increase to 68, in order to reflect these uncertainties. New life expectancy projections are published every two years and it makes sense to base the rise to age 68 on the most recent data, whilst allowing time for adequate notice.

Of course, the Government could revise their belief that the appropriate proportion of adult life spent in retirement should be lower than the 32% figure they preferred in 2017 which was lower than the 33.3% figure preferred at the previous report. Such changes [STRIKE]can produce any result which may be desired[/STRIKE] would ensure State Pension age remains appropriate, taking account of all circumstances which may apply at a future date.

A7andy

I read today that longevity for both men and woman has been reduced and the big insurance companies that build up a reserve fund in case we live longer , have now confirmed that they have overestimated that fund and will be releasing millions , not sure where to tho . However does that mean the government should be reviewing pension age again ? The pension age was pushed up by the government based on these longevity estimates!!!