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Budget leaves industry hanging regarding arrangements for moving to a new minimum access age for pensions  

 

  • Details still awaited on how the Normal Minimum Pension Age will increase from 55 to 57

  • A path paved with good intentions could lead to significant pension complexities

Steven Cameron, Pensions Director at Aegon comments:

“There have been widespread concerns from across the pensions industry, that the Treasury will push ahead with controversial proposals around how to implement an increase in the Normal Minimum Pension Age. This is the earliest age when people can typically access their pension and with a few exceptions, will increase from 55 to 57 from April 2028.

“The Treasury has consulted on special transitional provisions to ‘protect’ a small minority of individuals who are in schemes whose rules by sheer accident of history give an ‘unqualified right’ to take benefits at age 55. While well meaning, these protections if implemented as proposed could create decades of complexity for pension schemes and many unintended consequences for members, with little real benefit.

“With no mention of this in the Budget papers, we now await the Finance Bill scheduled for 4 November to provide clarity. Unfortunately, it could be a case of a path paved with good intentions leading to significant future complexities.”

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