In 2014, George Osborne announced that from 6 April 2015, everyone would have full flexible access to pension savings. At the same time, he also announced that in 2028 the minimum age you could access your pension savings would increase to 57. Over the years this has not been mentioned again until now.
From 6 April 2028, the earliest age you will be able to draw your pension will be 57. Unfortunately, there is no phasing into this as there has been with previous state pension age increases.
Anybody born after 5 April 1973 will have a minimum pension age of 57 instead of 55 while anybody born between 6 April 1971 and 5 April 1973 will be able to take benefits between their 55th birthday and 5 April 2028 before the minimum pension age increases. For those born before 5 April 1973, if they have not started to draw their pensions before 5 April 2028, they will have to wait until 57 before being able to access their pension fund.
Some pension schemes will have protected pension ages, which means that if the scheme rules state that benefits can be taken at age 55, this will continue to be the case as long as you have joined the scheme before 6 April 2023. However, most pension scheme rules just state that benefits can be taken from the normal minimum pension age rather than specifying age 55 this will not help most people.
Whilst this might seem a long way off, if you are likely to be affected by these changes, we would urge you to seek advice sooner rather than later as if the deadline is missed 57 will become the new 55.
Information for readers: This material is published for the information of clients. It provides only an overview of the regulations in force at the date of publication, and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material can be accepted by the authors or the firm