- The age at which someone can access their pension will increase from 55 to 57 in April 2028 under plans outlined by the Treasury today (https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/960034/NMPA_consultation_2021.02.10.pdf)
- Armed forces, police and fire service will be exempt from the rise
- Protection regime will be devised so members of some schemes can continue to access their pension earlier than 57
Tom Selby, senior analyst at AJ Bell, comments:
“Millions of savers need to start preparing for a two-year increase in the age at which they can access their retirement pot from April 2028.
“The rise in the ‘normal minimum pension age’ from 55 to 57, which has been long trailed by the Government, is designed to reflect rising life expectancy, will maintain a 10-year gap between the point someone can access their private pension and the state pension age.
“Some people who have rights to access their pension before age 57 in their existing scheme will be able to retain their lower minimum pension age, with the practicalities of these measures subject to consultation.
“While this may come as a blow to some people, it is important to remember that just because you can access your pension doesn’t mean you should.
“It’s worth bearing in mind that someone in their mid-50s might have another 35 years or more to live.
“Anyone accessing their fund this early therefore needs to think carefully about the sustainability of any withdrawals and the impact they might have on their lifestyle as they grow older.”