Govt confirms pension freedom age hike to 57

jamesd

Of course there's often little to  stop you from borrowing for a few years then repaying with the pension money.

DT2001

The last increase as Silvertabby says was April 2010. I had a deferred DB pension and asked the administrators if I could still take my pension at 50 despite that date being after April. Initially they said no but changed their minds as I suggested it was a pre existing contract. I took my pension at 51 so maybe the same will apply to some pensions in 2028.

hyubh

Newbeard said:

Hugheskevi, point taken. I should have said taken earlier without actuarial reduction.

At an albeit high level, a DC pension drawn at 55 is equivalent to a DB pension taken at 55 and actuarially reduced, since in the former case, you are losing out on the growth you would have likely got had the money stayed invested.

garmeg

DT2001 said:

The last increase as Silvertabby says was April 2010. I had a deferred DB pension and asked the administrators if I could still take my pension at 50 despite that date being after April. Initially they said no but changed their minds as I suggested it was a pre existing contract. I took my pension at 51 so maybe the same will apply to some pensions in 2028.

That would have been because the DB scheme had a protected retirement age of 50. One of mine has and one hasn't.

Might be worth a read ...

https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm062205

barnstar2077

jamesd said:

Of course there's often little to  stop you from borrowing for a few years then repaying with the pension money.

I have thought about this too, but the problem is I want to retire many years before I can access my pension.

I would want to borrow money for the shortest amount of time, probably the year before I get access to my private pension.  Ideally I would use my mortgage to do so, but by then I wouldn't be working, and I would imagine that will be one of the first questions the mortgage company asks me.

This isn't the current plan at all, but as the government keep moving the goalposts it is good to have options.

Anonymous101

barnstar2077 said:

jamesd said:

Of course there's often little to  stop you from borrowing for a few years then repaying with the pension money.

I have thought about this too, but the problem is I want to retire many years before I can access my pension.

I would want to borrow money for the shortest amount of time, probably the year before I get access to my private pension.  Ideally I would use my mortgage to do so, but by then I wouldn't be working, and I would imagine that will be one of the first questions the mortgage company asks me.

This isn't the current plan at all, but as the government keep moving the goalposts it is good to have options.

I'm in the same situation. I'll hopefully be in a position to step away from full time employment in my mid to late 40's. I plan on using ISA savings to bridge the gap until I can access my pension. I have also considered saving more into the pension and using borrowing to bridge the gap but discounted it as too risky as legislative change could push the access date back mid span.
If the worst were to happen and the ISA funds dwindle prior to access I'd think that I'd just have to go back to work for a few months in order to play the game with the mortgage.

Albermarle

I have thought about this too, but the problem is I want to retire many years before I can access my pension
I'll hopefully be in a position to step away from full time employment in my mid to late 40's.

I think you have to take into account that wanting to retire very early is a specific ( and still quite unusual) lifestyle choice/hope and pension changes are never going to take into account how they affect a small minority who have a wish to retire at an unusually young age. 

kangoora

If i read that correctly, as long as you are 55 before the 6th April 2028, you can still access your DC pension before the age of 67? My wife will be 55 in 2024 so presumably will be fine?

Albermarle

kangoora said:

If i read that correctly, as long as you are 55 before the 6th April 2028, you can still access your DC pension before the age of 67? My wife will be 55 in 2024 so presumably will be fine?

According to the new rules , your wife will get her state pension when she is 67 and will be able to access DC pension at 57 .
Unless the rules change again in the meantime of course 

noitsnotme

I miss out by 9 months and my wife by 7 months.  Always in the wrong place at the wrong time