PENSION freedoms age is set to rise from 55 to 57, the government has confirmed, meaning those who want to access their private pension savings as soon as possible may need to wait longer.
The government today confirmed that workers will need to wait until they’re 57 to access personal pensions from 2028. Currently, the age at which point a person can do this is 55.
The prospective change to defined contribution (DC) pensions was today confirmed in a written ministerial statement by economic secretary to the Treasury John Glen.
Workplace pensions and the state pension are not affected by this change.
In a written statement Mr Glen said: “In 2014 the government announced it would increase the minimum pension age to 57 from 2028, reflecting trends in longevity and encouraging individuals to remain in work, while also helping to ensure pension savings provide for later life.
“That announcement set out the timetable for this change well in advance to enable people to make financial plans and will be legislated for in due course.”
Steven Cameron, Pensions Director at Aegon, commented on the confirmation from the Government that pension freedom age is to increase from 55 to 57 in 2028.
He said: “The Government has confirmed it is to proceed with an increase in the age at which people can access their pension.
“Currently, under the hugely popular pension freedoms, individuals can access their pension from age 55. This is to increase to age 57 from 2028.
“The Government did indicate back in 2014 its intention to do this, but didn’t include provisions in legislation, leading to uncertainty over whether the change was still planned.
“This latest announcement confirms the change will happen meaning those retiring in future will have to wait longer to access their pension.
“It will be particularly impactful on those who were due to reach their 55th birthday just after the cut off, sometime in 2028.
“It’s now imperative that both Government and industry make sure this change is clear to all those saving in pensions.
“We can’t afford a repeat of the Government communication gaps which left many women to find out too late that their state pension age was increasing from 60 to 65.”
Elsewhere, the state pension age is currently rising.
Following changes in recent years, it will reach 66 for both men and women in October 2020.
This is ahead of further rises to come over future months and years.
In the past, the state pension age was 65 for men and 60 for women.
However, changes set out under the Pensions Act 1995 were accelerated under the Pensions Act 2011.
It meant state pension age parity between men and women was reached in November 2018, ahead of further changes.
For those who want to check their state pension age, it’s possible to do so online.
The “Check your State Pension age” tool can be accessed via the government website.