shift in pension access age

[p1doc]

I see access to pension shifts from 55 to 57 in 2028 when I turn 55
do you think there will be leeway for those who turn 55 or tough sh*t basically?
thanks

[dingg]

From the ft.

Experts said the move would probably affect those born after April 6, 1973, who are aged 47 and younger today. They will have to wait an extra two years to take either a lump sum or income from their pension.

[Paul_M3]

I haven't really thought this through, so apologies if it's a stupid question...but why is the government increasing the age at which point people can access their private pensions.

Obviously I understand the need to increase the state pension, but why does the government care about when I take my company pension?

Surely if I retire earlier, they'll still be getting a tax income on my pension payments, but I will have also created a space for an unemployed person to fill who will also be paying tax?

[p1doc]

typical my birthday is nov 73 lol
as I understand they are trying to restrict access till 10yrs before SPA so is likely to increase
thanks

[LeighW]

dingg said:

From the ft.

Experts said the move would probably affect those born after April 6, 1973, who are aged 47 and younger today. They will have to wait an extra two years to take either a lump sum or income from their pension.

Well isn't that just fantastic. I was born on 18/4/73.

[p1doc]

LeighW said:

Well isn't that just fantastic. I was born on 18/4/73.

makes me feel slightly better!

[LeoSayer]

Discussed recently on this thread:

https://www.pistonheads.com/gassing/topic.asp?h=0&...

[TwigtheWonderkid]

LeighW said:

Well isn't that just fantastic. I was born on 18/4/73.

I'm not sure that many people take it at 55 anyway. Unless you actually need the money there and then, it will usually grow better left in the pension fund than stuck in a savings account. Plus it's ringfenced from IHT in the pension pot, but is part of your taxable estate once you withdraw it.

I'm 58 in a couple of days and I haven't taken mine yet.

[Meeten-5dulx]

I saw this last week and contacted my IFA.
He was at pains to tell me that I would be impacted (September 73)

We had been working on a 55 - 58 age retirement.
Guess decision has been made now....

Still annoyed that my ability to retire at 55 has been removed from me.

[Stay in Bed Instead]

Meeten-5dulx said:

I saw this last week and contacted my IFA.
He was at pains to tell me that I would be impacted (September 73)

We had been working on a 55 - 58 age retirement.
Guess decision has been made now....

Still annoyed that my ability to retire at 55 has been removed from me.

This is not a sudden change, it's been know about for several years. The Governments intention is to maintain access from 10 years prior to SPA.

[Meeten-5dulx]

Stay in Bed Instead said:

Meeten-5dulx said:

I saw this last week and contacted my IFA.
He was at pains to tell me that I would be impacted (September 73)

We had been working on a 55 - 58 age retirement.
Guess decision has been made now....

Still annoyed that my ability to retire at 55 has been removed from me.

This is not a sudden change, it's been know about for several years. The Governments intention is to maintain access from 10 years prior to SPA.

Agree - it was always in contention of being implemented.
But it IS now.....

[LeighW]

TwigtheWonderkid said:

LeighW said:

Well isn't that just fantastic. I was born on 18/4/73.

I'm not sure that many people take it at 55 anyway. Unless you actually need the money there and then, it will usually grow better left in the pension fund than stuck in a savings account. Plus it's ringfenced from IHT in the pension pot, but is part of your taxable estate once you withdraw it.

I'm 58 in a couple of days and I haven't taken mine yet.

To be honest, I have no plans to touch mine until I'm 60+ anyway (assuming I get there )

Any hopes of early retirement went right out of the window when I got divorced a few years ago...

[p1doc]

Meeten-5dulx said:

I saw this last week and contacted my IFA.
He was at pains to tell me that I would be impacted (September 73)

We had been working on a 55 - 58 age retirement.
Guess decision has been made now....

Still annoyed that my ability to retire at 55 has been removed from me.

same here was planning to retire 55-57 and work part time and thought government would give some leeway if turn 55 in 2028
I suppose COVID forced their hand a bit but still annoying
really feel sorry for my 18yr old daughter just starting uni 3hrs face to face per week who knows her retirement age??!!

[SunsetZed]

p1doc said:

Meeten-5dulx said:

I saw this last week and contacted my IFA.
He was at pains to tell me that I would be impacted (September 73)

We had been working on a 55 - 58 age retirement.
Guess decision has been made now....

Still annoyed that my ability to retire at 55 has been removed from me.

same here was planning to retire 55-57 and work part time and thought government would give some leeway if turn 55 in 2028
I suppose COVID forced their hand a bit but still annoying
really feel sorry for my 18yr old daughter just starting uni 3hrs face to face per week who knows her retirement age??!!

It doesn't mean you can't retire earlier it just means you need to plan to have an income outside of a pension wrapper for the intervening period, I personally don't think it's that big a thing as people still have 7 years plus to plan for that so you can adjust if you still want to retire at 55.

I'm not yet 40 but would like to retire in my 50's and am planning on the basis that I won't be able to access my pension savings until 60.

[Stay in Bed Instead]

p1doc said:

same here was planning to retire 55-57 and work part time and thought government would give some leeway if turn 55 in 2028
I suppose COVID forced their hand a bit but still annoying
really feel sorry for my 18yr old daughter just starting uni 3hrs face to face per week who knows her retirement age??!!

Nothing to do with Covid.

The intention has been know for several years.

[Richtea1970]

TwigtheWonderkid said:

LeighW said:

Well isn't that just fantastic. I was born on 18/4/73.

I'm not sure that many people take it at 55 anyway. Unless you actually need the money there and then, it will usually grow better left in the pension fund than stuck in a savings account. Plus it's ringfenced from IHT in the pension pot, but is part of your taxable estate once you withdraw it.

I'm 58 in a couple of days and I haven't taken mine yet.

I’ll definitely be taking mine from 55. I’m 50 now and having seen relatives leave their pensions until they are too old to enjoy it has made my mind up for me. The mother-in-law refused to touch her pension until her early seventies, a year later went into a care home with severe dementia. Now her pension is paying the government each week to look after her.

[mikeiow]

Meeten-5dulx said:

I saw this last week and contacted my IFA.
He was at pains to tell me that I would be impacted (September 73)

We had been working on a 55 - 58 age retirement.
Guess decision has been made now....

Still annoyed that my ability to retire at 55 has been removed from me.

Hopefully your IFA has given you coaching and advice on how to financially fill those extra 2 years should you wish to ease back from 55.
If not....maybe finding more cost-effective ways to invest & perhaps save on his fees could go some way towards that goal

[Meeten-5dulx]

mikeiow said:

Meeten-5dulx said:

I saw this last week and contacted my IFA.
He was at pains to tell me that I would be impacted (September 73)

We had been working on a 55 - 58 age retirement.
Guess decision has been made now....

Still annoyed that my ability to retire at 55 has been removed from me.

Hopefully your IFA has given you coaching and advice on how to financially fill those extra 2 years should you wish to ease back from 55.
If not....maybe finding more cost-effective ways to invest & perhaps save on his fees could go some way towards that goal

It was a hope to be able to retire at 55, but not a 'dead cert'.
It was dependent on where the pot would be. At the moment if it contines current trajectory (despite covid) 55 was a distinct possibility.
This is out of the window now as ther emay well be education fees to pay whilst I am 55-57.

Agree cutting out his fees would assist, but I'm happy to pay for good advice and as long as my pot is increasing with his assistance, I have no issues with paying fees.

[WhiskyDisco]

As I understand it you are able to access your pension before 58 if you "retire on grounds of ill-heath". Other than spinning a lie and having a doctor back up the lie, what other ways of accessing your pension early are there? I wondered if you moved to another country, where the SPA age is lower than 68 would you be able to take it earlier?

Someone commented why would you want to take your pension early - I know someone who, at 46 years old is already over the lifetime allowance. He would like to give up work, but can't access his pensions and (I think) is having to pay tax on the amount over the allowance.

[mikeiow]

Meeten-5dulx said:

mikeiow said:

Meeten-5dulx said:

I saw this last week and contacted my IFA.
He was at pains to tell me that I would be impacted (September 73)

We had been working on a 55 - 58 age retirement.
Guess decision has been made now....

Still annoyed that my ability to retire at 55 has been removed from me.

Hopefully your IFA has given you coaching and advice on how to financially fill those extra 2 years should you wish to ease back from 55.
If not....maybe finding more cost-effective ways to invest & perhaps save on his fees could go some way towards that goal

It was a hope to be able to retire at 55, but not a 'dead cert'.
It was dependent on where the pot would be. At the moment if it continues current trajectory (despite covid) 55 was a distinct possibility.
This is out of the window now as there may well be education fees to pay whilst I am 55-57.

Agree cutting out his fees would assist, but I'm happy to pay for good advice and as long as my pot is increasing with his assistance, I have no issues with paying fees.

Nothing's a dead cert, eh! Education fees....well, if we didn't have kids, we'd all retire at 45, eh (but be poorer!)

I guess what I was hoping to hear was that he might have suggested building up a couple of years of money to live off outside the pension fund...perhaps through S&S ISAs.
Paying his fees for advice is perfectly fine: plenty of folk pay for financial advice, I don't have any problem with that.....but I do feel he ought to work with you to help keep the option there for you to "step back" at 55 regardless of the change in pension law ;-)

Good luck!