The government has confirmed it will raise the minimum age at which people can access their private pension from 55 to 57 in 2028.
Secretary to the Treasury John Glen confirmed today that the changes will be legislated for ‘in due course’ in response to a question from Labour MP Stephen Timms.
The government first announced the plans in 2014, which Glen said enabled people to make financial plans ‘well in advance’.
‘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’,’ he said.
The change will have significant implications for pension freedoms, introduced by the government in 2015, as this currently allows anyone aged 55 and over access their personal pension pots however they like.
In 2014, the government also announced the state pension age is set to 67 between 2026 and 2028 for both sexes. As of October this year, it will rise to 66 for men and women.
Tom Selby, senior analyst at AJ Bell, said increasing the pensions access age in line with the state pension from 2028 is a ‘sensible approach’ and gives savers ‘plenty of time’ to adjust their retirement income plans while also ensuring the system reflects broader life expectancy trends.
‘It will be important as 2028 approaches that all parts of the pensions industry – including advisers and providers – communicate with customers to ensure people are prepared for this change,’ he added.
Steven Cameron, pensions director at Aegon, said the people most affected by the change were those who turned 55 after the cut-off date in 2028.
‘It’s now imperative that both the government and the industry make sure this change is clear to all those saving in pensions,’ he said.
‘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.’