Minimum age for pension benefits rising from 55 to 57

Slinky

I know many people know/expect this to be happening, but I've just had some paperwork through from a pension provider which gives the date this is expected to happen as 6th April 2028, and thereafter rising as the state pension age rises, to be no more than 10 years before state pension age.


Not my problem as it won't affect me, but will affect younger readers.



This is the first time I've noticed this on any paperwork, just thought I'd bring it to the attention of the forum in case those affected weren't aware of the precise date the changes are expected to kick in.

Linton

The government have in the past stated that the pension access age should be raised in line with the State Pension age, but so far they have not put any change to current legislation to parliament. I think one should expect 10 years notice of such changes to pension arrangements so perhaps we are now looking at April 2029 in the unlikely event of the government finding time to think about anything controversial beyond BREXIT.

Anonymous101

I'm sure it will affect me. I'm 37 and have desires to retire before 50. Hopefully in my mid 40's.

I think its prudent for anyone in my age group to be both saving heavily into their pension but also have a plan for the access to pension age going up.

For me that includes making the most of the tax relief on pension contributions while that is still available too. If at any point that is withdrawn which is often talked about then my plan will be reassessed again.

Building flexibility into your retirement plan is key.

Mr.Generous

Anonymous101 wrote: »

I'm sure it will affect me. I'm 37 and have desires to retire before 50. Hopefully in my mid 40's.

I think its prudent for anyone in my age group to be both saving heavily into their pension but also have a plan for the access to pension age going up.

For me that includes making the most of the tax relief on pension contributions while that is still available too. If at any point that is withdrawn which is often talked about then my plan will be reassessed again.

Building flexibility into your retirement plan is key.

Sounds good but you'll have to find something to do - that's a long time to spend playing bowls and watching Doctors on TV.

Paul_Herring

6th April 2028

They're just repeating what's been said previously, but surprised it's down in writing from an actual provider given what (hasn't) happened since first mooted:

From 2018: https://montgomerycharles.co.uk/2018/09/your-retirement-date-it-just-keeps-going-up-and-up/

the minimum pension age will increase to 57, from April 2028

2015: https://www.bbc.co.uk/news/business-32087038

You can now access that pot freely from the age of 55 (57 from 2028), taking out as much as you like, subject to tax.

2014: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/294795/freedom_and_choice_in_pensions_web_210314.pdf

This is why this consultation also includes a proposal to raise the age at which an individual can take their private pension savings under the tax rules from 55 to 57 in 2028, at the point that the State Pension age increases to 67.

Anonymous101

Mr.Generous wrote: »

Sounds good but you'll have to find something to do - that's a long time to spend playing bowls and watching Doctors on TV.

I'd "retire" now if I could. There's so much to see, do and learn in the world I don't think I'll have any trouble filling my time. I could fill several lifetimes, one just isn't enough! :money:

brewerdave

Anonymous101 wrote: »

I'd "retire" now if I could. There's so much to see, do and learn in the world I don't think I'll have any trouble filling my time. I could fill several lifetimes, one just isn't enough! :money:

Great.....if you have the money for both the lifestyle now and to live on for maybe 50 more years..............most people in their early 40s have mortgages, children to educate and get thru University etc etc:)

hugheskevi

As I understand it...

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 response 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:

• 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.
  
• If the change is legislated for, will the shorter time to the change taking effect mean the implementation date is put back to give people adequate notice to change their plans?
  
• 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.
  
• 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+)?

Anonymous101

brewerdave wrote: »

Great.....if you have the money for both the lifestyle now and to live on for maybe 50 more years..............most people in their early 40s have mortgages, children to educate and get thru University etc etc:)

True, that's no different for me though.

Perhaps I'm fortunate that I have a lifestyle which we enjoy that doesn't cost very much. By being very intentional (tight) we're able to save with the aim of freeing up more time later in life.

Paul_Herring

Better spending/living life as you go along rather then skinning yourself for some mythical date in the future...

You're on the pension board. You realise that 'mythical dates in the future' are the whole point of pensions?

Anonymous101

jeepjunkie wrote: »

Better spending/living life as you go along rather then skinning yourself for some mythical date in the future...

:rotfl:

Its not mythical though is it... its inevitable. You can't stop time.

I understand the "you might get hit by a bus" argument. Its nonsense, do you think I might get hit by a bus this afternoon so I won't go to work today?

Its about probability and chances are I'll live until state retirement age let alone the fact that putting plenty aside to increase my chance of early retirement also increases the likelihood of me being around to enjoy it while I'm young. So while I don't skint myself by putting every penny I have into my pension, I'm quite happy to go without overspending now so I can retire 20 years before my peers.