Posted 15th September 2020
The government proposes to increase the age at which an individual can take their private pension savings at the same rate as the increase in the State Pension age. It is important people have the opportunity to plan properly for this change and so the proposal is to wait until 2028 (when the State Pension age will rise to 67) to fully implement the change.
From 2028, people will not be able to draw their private pension benefits without a tax penalty until age 57, whether or not it is the point at which they stop work. From then on, the minimum pension age in the tax rules will rise in line with the State Pension age so that it is always ten years below.
This announcement will be particularly impactful on those who were due to reach their 55th birthday just after the cut off, sometime in 2028.