Private pensions - now 57???
Discussion
TwigtheWonderkid said:
But the general principle is to narrow the gap between the 2 ages.
That's an odd aim, really. We have a bunch of people who can afford to remove themselves from the employment market, thus freeing up roles for others to step into. But we're going to make them work longer, because of envy?TwigtheWonderkid said:
Mr Pointy said:
It's 10 years less than your State Pension date If I recall correctly.
Not quite. it's 55 now for people getting SP at 67. OP will have to wait to 57, when his SP age will be 68.But the general principle is to narrow the gap between the 2 ages.
randlemarcus said:
TwigtheWonderkid said:
But the general principle is to narrow the gap between the 2 ages.
That's an odd aim, really. We have a bunch of people who can afford to remove themselves from the employment market, thus freeing up roles for others to step into. But we're going to make them work longer, because of envy?It has the bonus of forcing more to stay in work longer, hence paying more tax for longer. Generally, taxable working incomes will be greater than taxable pension incomes.
randlemarcus said:
TwigtheWonderkid said:
But the general principle is to narrow the gap between the 2 ages.
That's an odd aim, really. We have a bunch of people who can afford to remove themselves from the employment market, thus freeing up roles for others to step into. But we're going to make them work longer, because of envy?TwigtheWonderkid said:
I think they have two concerns. People giving up work and thinking they can bridge the gap between retirement and their SP age, and running out of money. so being a bigger drain on public finances in the future. And having worked 35 years, say from age 20, stopping at 55 and still being eligible for the full SP. Whereas a poorer person would work until 67, pay NI for 47 years, and get no more SP than if he'd stopped paying in at 55.
That can still happen though can’t it? Op can still leave employment at 55 live off savings till 57 and still qualify for the full SP. that’s what I intend to do. At 55 I will have worked full time for 35 years and PT for another 4 or 5 there is nothing to stop me retiring at 55 and taking personal pension at 57. I’m not expecting much from the state pension if anything by then. audi321 said:
I'm sure someone will be along to correct me, but have I just seen that the earliest I can now access my personal pension is age 57 (after April 2028)???
Typical if it is, I'm 54 and 9 months in April 2028..............
Not been put into law yet. It’s strongly suspected, after consultation, that already open pensions (as of Feb 2021) that would have allowed withdrawal at 55 will be protected. Typical if it is, I'm 54 and 9 months in April 2028..............
https://forums.moneysavingexpert.com/discussion/62...
If that’s right, then this wouldn’t impact your already open schemes.
Of course, it’s perfectly possible the govt chooses to legislate differently.
Jawls said:
audi321 said:
I'm sure someone will be along to correct me, but have I just seen that the earliest I can now access my personal pension is age 57 (after April 2028)???
Typical if it is, I'm 54 and 9 months in April 2028..............
Not been put into law yet. It’s strongly suspected, after consultation, that already open pensions (as of Feb 2021) that would have allowed withdrawal at 55 will be protected. Typical if it is, I'm 54 and 9 months in April 2028..............
https://forums.moneysavingexpert.com/discussion/62...
If that’s right, then this wouldn’t impact your already open schemes.
Of course, it’s perfectly possible the govt chooses to legislate differently.
Seems to make no sense at all bringing this in, only to have yet ANOTHER pension ruling to consider and making an already incredibly complicated historical non retrospective legislation even more so.
audi321 said:
Jawls said:
audi321 said:
I'm sure someone will be along to correct me, but have I just seen that the earliest I can now access my personal pension is age 57 (after April 2028)???
Typical if it is, I'm 54 and 9 months in April 2028..............
Not been put into law yet. It’s strongly suspected, after consultation, that already open pensions (as of Feb 2021) that would have allowed withdrawal at 55 will be protected. Typical if it is, I'm 54 and 9 months in April 2028..............
https://forums.moneysavingexpert.com/discussion/62...
If that’s right, then this wouldn’t impact your already open schemes.
Of course, it’s perfectly possible the govt chooses to legislate differently.
Seems to make no sense at all bringing this in, only to have yet ANOTHER pension ruling to consider and making an already incredibly complicated historical non retrospective legislation even more so.
As for the motivation, I agree with the other posters that it’s about protecting people from themselves (ie. retiring early and then not being able to bridge to state pension age). Is that good policy? I guess ... the state should protect people. But it’ll likely negatively affect me so I can’t say that doesn’t smart. Those who are younger than you and sufficiently wealthy can plan to bridge from 55 etc via ISAs even if pension age goes up.
Agree that the sector gets more complex by the day!
BoRED S2upid said:
TwigtheWonderkid said:
I think they have two concerns. People giving up work and thinking they can bridge the gap between retirement and their SP age, and running out of money. so being a bigger drain on public finances in the future. And having worked 35 years, say from age 20, stopping at 55 and still being eligible for the full SP. Whereas a poorer person would work until 67, pay NI for 47 years, and get no more SP than if he'd stopped paying in at 55.
That can still happen though can’t it? Op can still leave employment at 55 live off savings till 57 and still qualify for the full SP. that’s what I intend to do. At 55 I will have worked full time for 35 years and PT for another 4 or 5 there is nothing to stop me retiring at 55 and taking personal pension at 57. I’m not expecting much from the state pension if anything by then. To have a broad brush approach on private pensions really doesn’t feel right.
There will be individuals who have hereditary health issues / will die younger than average who know this and would therefore want to retire “early” but to link to a state pension age which some know they will never draw is wrong.
SP commencement at 67/68 is what it is all you can do personally is to ensure you have all qualifying years to maximise what SP you are due at the age it is due.
Private pension it’s a pot - which individuals may want to fully exhaust in their lifetime.
Solution is clearly going to see individuals saving more and more in non pension tax efficient savings where the govt have no control on its use.
There will be individuals who have hereditary health issues / will die younger than average who know this and would therefore want to retire “early” but to link to a state pension age which some know they will never draw is wrong.
SP commencement at 67/68 is what it is all you can do personally is to ensure you have all qualifying years to maximise what SP you are due at the age it is due.
Private pension it’s a pot - which individuals may want to fully exhaust in their lifetime.
Solution is clearly going to see individuals saving more and more in non pension tax efficient savings where the govt have no control on its use.
Welshbeef said:
To have a broad brush approach on private pensions really doesn’t feel right.
There will be individuals who have hereditary health issues / will die younger than average who know this and would therefore want to retire “early” but to link to a state pension age which some know they will never draw is wrong.
I think there are some exemptions written in for people with terminal illnesses. There will be individuals who have hereditary health issues / will die younger than average who know this and would therefore want to retire “early” but to link to a state pension age which some know they will never draw is wrong.
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