Taking pension before or after April 2028 rise to 67.

Rustin

Partner and I are considering retiring in February 2028. Day mortgage paid up. Her 55, me just 56.

I'm LGPS since 2010 and my birthday is 16.02.1972.

Partner is Teacher Pension Scheme, since 2000, DoB 14.10.1972.

Private pension to dip into, emergency but hope not to touch too much and will have an AVC to help cover 10 years or so to state pension.

It may be a little tight so thinking of working another year, retiring January 2029, however April 2028 retirement rises to 67.

I've read, but nothing at all conclusive and I'm sceptical, that if you were born before April 1973 you would be able to take your pension still at 55, in for example February 2029.

I'm confused and I'm working with either retiring Feb 2028 or would have to hang on to partners October birthday 2029, but probably to pad pension a little January 2030 after Xmas holidays.

Anyone here point out where I'm totally wrong, or is being born before April 1973 a get out of jail free card in this instance?

NoMore

Its non state pension access age is rising from 55 to 57 in April 2028. the state pension age is rising as well but currently there is no link between the two. There was an intention to make the access age 10 years before the state pension age but this has not currently been implemented in law.

Currently it is a hard change and there is no protection for those people who fall in the bracket of being 55 before April 28 but not 57 yet. So if you are 55 in feb 28 and don’t take your pension before April you will have to wait two years to access it. 

I also fall in this bracket and are waiting for the government to clarify this as there is all some question around dc pensions in flex access as to whether you can still access them or do you get effectively stopped for up to two years until you reach 57. 

There is protection for some pensions that allow those to be drawn at 55 no matter what, but that's to do with the terms of the pension itself and not the age of the person.

katejo

As I understand it, the option to take your pension at 55 (soon to change to 57) is only relevant to DC pensions. Mine is a DB one (as your partner's teachers pension will be). I would have had a heavy penalty if I had taken it before 60. I am 61 now. As things stand now, I could take my full pension with no reduction at 66. However, as you say, it is shortly to go up to 67 in 2028. I did ask my pension provider (SAUL)  about this earlier this week. I asked whether I would be affected by the age increase if I retired before April 2027 (when the increase is likely to be implemented on my pension scheme). The impact/ pension reduction for me of retiring before the official age is relatively low because I paid into a final salary scheme for  23 years until it closed and that won't be reduced at all. 

NoMore

katejo said:

As I understand it, the option to take your pension at 55 (soon to change to 57) is only relevant to DC pensions. Mine is a DB one (as your partner's teachers pension will be). I would have had a heavy penalty if I had taken it before 60. I am 61 now. As things stand now, I could take my full pension with no reduction at 66. However, as you say, it is shortly to go up to 67 in 2028. I did ask my pension provider (SAUL)  about this earlier this week. I asked whether I would be affected by the age increase if I retired before April 2027 (when the increase is likely to be implemented on my pension scheme). The impact/ pension reduction for me of retiring before the official age is relatively low because I paid into a final salary scheme for  23 years until it closed and that won't be reduced at all. 

Its still relevant to DB pensions (if not protected), it will affect the earliest age you can take them with actuarial reduction with some DB pensions you are right that the state pension age also affects some of them as the date to take them without reduction will also change.

Silvertabby

The last increase in minimum pension age was from 50 to 55 in April 2010.

Some did have reserved rights to 50 (or even earlier) but, on the whole, the hard increase applied to the majority - including the public sector.

p00hsticks

Some DB pensions also have a Normal Retirement Age 'baked in' rather than linking to whatever the state pension age will be. 
I have one that I could take without any reduction at 60, and another that is set to 65. 

Dazed_and_C0nfused

NoMore said:

katejo said:

As I understand it, the option to take your pension at 55 (soon to change to 57) is only relevant to DC pensions. Mine is a DB one (as your partner's teachers pension will be). I would have had a heavy penalty if I had taken it before 60. I am 61 now. As things stand now, I could take my full pension with no reduction at 66. However, as you say, it is shortly to go up to 67 in 2028. I did ask my pension provider (SAUL)  about this earlier this week. I asked whether I would be affected by the age increase if I retired before April 2027 (when the increase is likely to be implemented on my pension scheme). The impact/ pension reduction for me of retiring before the official age is relatively low because I paid into a final salary scheme for  23 years until it closed and that won't be reduced at all. 

Its still relevant to DB pensions (if not protected), it will affect the earliest age you can take them with actuarial reduction with some DB pensions you are right that the state pension age also affects some of them as the date to take them without reduction will also change.

Isn't it that they might change, there are known increases from 66 to 67 and then 67 to 68 but nothing has been legislated for after those are in place.

I think the next decision has to be made by 2029, but that could be a do nothing yet like the last government opted for in 2023.

katejo

p00hsticks said:

Some DB pensions also have a Normal Retirement Age 'baked in' rather than linking to whatever the state pension age will be. 
I have one that I could take without any reduction at 60, and another that is set to 65. 

That's what I referred to. The one for mine is currently 66 but is expected to increase to 67 in April 2027. The final salary closed part of mine can be taken at 60 with no penalty. If mine goes up to 67, it will only affect money paid in after the increase..

Silvertabby

p00hsticks said:

Some DB pensions also have a Normal Retirement Age 'baked in' rather than linking to whatever the state pension age will be. 
I have one that I could take without any reduction at 60, and another that is set to 65. 

Can't see that changing for earlier accruals.

In the case of the LGPS, accruals:

Up to 31 March 2008 = 60 (with R85, 65 without)
 
1 April 2008 to 31 March 2014 = 65

1 April 2014 onwards = SPA.

But I can see all post April 2014 accruals increasing with SPA.  When CARE was introduced in 2014, the rules specified that  unreduced payments would be from SPA, but with a minimum age of 65.  This was to cover the ladies who still had a SPA of less than 65 (without checking, it was about 63 back then).