Important notice about the proposed protected age for pension benefits
The minimum age that most clients can access their pension benefits is currently age 55, however, the Government is proposing to increase this to 57 from 6 April 2028. The Government has outlined its proposals in a consultation document which can be found on the government website.
In the consultation the Government proposes that existing pension holders, as at 11 February 2021, can have their retirement age of 55 protected for pension benefits in that particular scheme. If the holder transfers that pension to another scheme, the current proposals state that the protected retirement age could be lost. In addition to this, customers who open a pension after the 11 February 2021 (and who will be 55 after 6 April 2028) will have to wait until they are at least 57 before accessing their pension savings (unless they are taking their pension due to ill-health).
As this is a consultation, it is not yet certain that the Government will go ahead with its proposals as outlined.
We will keep you updated as further details are confirmed.
Increasing the normal minimum pension age: a brief examination of the consultation paper
Paul Kennedy, our tax expert, take a look at some salient points within the consultation and makes a few observations.Download your postcard