Now, people aged 55 and over who have a pension set up before 11th February 2021 can take their personal or occupational pension schemes.
Anyone setting up a new pension or transferring existing pensions into a new one will have to wait until they are 57 before they can take the benefits.
From 6th April 2028, everyone will have to wait until 57 before they can take their pension benefits unless they have the contractual right to take benefits at 55 written into their pension contracts. Typically, workplace pensions would have this written into them.
I received a call from a lady this week who had just reached the age of 55. She wanted to take a lump sum under the Flexi Access Drawdown rules, but her current scheme rules wouldn’t allow it. She, therefore, phoned me to see about moving it to a new scheme, which would allow it. However, by moving to a new scheme, she would now be subject to the new age of 57!
This is adding a new level of complexity to pensions and illustrates the need even more to take independent financial advice.
We are a firm of Independent Financial Advisers (IFA’s). This means that we offer you unbiased financial advice. We look at all the options available to you from the whole of the market. So, why not contact us today to start your retirement planning. The initial “getting to know you” meeting is at our expense and is without obligation. Our experience covers all aspects of financial planning including pensions, estate planning and investments.
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If you have any thoughts on this article, “Normal Minimum Pension Age. A change that might affect you “, then we would love to hear from you.