In April 2015, the government introduced pension freedoms. These gave savers in defined contribution (DC) schemes greater access to their cash, allowing flexible withdrawals from the age of 55.
The government has confirmed that in 2028, it will raise the minimum age that people can access their private pension from 55 to 57.
First announced in 2014, the government proposed this change to reflect the fact that we are living longer. It will also encourage people to stay in work and ensure their pension savings are adequate for later life.
2028 may seem like a long time in the future! However, the timely announcement enables everyone within the pensions industry to communicate with their customers to ensure they are aware and prepared for this change. It seems that the government are keen to avoid gaps in communication. Such as those which left many women finding out too late that their state pension age was increasing from the age of 60 to 65.
If you wish to, you can still retire at age 55. The pension freedoms age change just means that you would need to access other assets, savings or investments prior to the minimum age you can access your private pension pot.
It is also important to note that from October 2020, the age at which both men and women can access their state pension is increasing to 66.
With these changes in mind, it may be time to seek advice and review your retirement planning, to ensure you have adequate funds in place to enjoy the retirement you are working towards.
For specialist financial advice or to arrange an initial no-obligation consultation via telephone or video, please telephone us on 01772 729 742. Alternatively, you can complete our online enquiry form, and we will give you a call to discuss your requirements.