Workers could be forced to wait until 60 to access pension
Discussion
https://www.telegraph.co.uk/money/pensions/private...
Wtaf. Hopefully just telegraph scare stories else ph director rebellion!
Wtaf. Hopefully just telegraph scare stories else ph director rebellion!
This is something we was talking about at work a few weeks ago, people aren’t saving enough anyway, too many workers retiring so up the age to stop them going, I wouldn’t be surprised if it ended up the same as state pension age…
My personal pension I’ve reduced from 14% to 6% as using drawdown at 5% from 57 (see other threads….) I will be about £13k so paying tax, upping the age will be more so I’ve started putting extra in my isa
My personal pension I’ve reduced from 14% to 6% as using drawdown at 5% from 57 (see other threads….) I will be about £13k so paying tax, upping the age will be more so I’ve started putting extra in my isa
In my case personal pension access has already gone from 50 to 55 to 57, it is muted to be going 58 - I suspect the 60 is just to make people accept a very short term change to 58.
With the tax / inheritance changes introduced imho you’d be better using ISA accounts….. can’t see why anybody would invest hugely in a pension.
bennno said:
In my case personal pension access has already gone from 50 to 55 to 57, it is muted to be going 58 - I suspect the 60 is just to make people accept a very short term change to 58.
With the tax / inheritance changes introduced imho you d be better using ISA accounts .. can t see why anybody would invest hugely in a pension.
Only on PH is retiring in your mid 50's considered remotely normal. With the tax / inheritance changes introduced imho you d be better using ISA accounts .. can t see why anybody would invest hugely in a pension.
57 (or 58) will be immaterial to >90% of people.
Mar5hall said:
https://www.telegraph.co.uk/money/pensions/private...
Wtaf. Hopefully just telegraph scare stories else ph director rebellion!
This isn't news.Wtaf. Hopefully just telegraph scare stories else ph director rebellion!
As has been said above, the lower age limit for accessing a private pension is increasing. For me, it was 55 but now it's 57. It won't stop there.
Anyone who in their 30s or 40s who is planning to retire at 57 should ensure that they have some funds outside of their SIPP to bridge the gap
omniflow said:
This isn't news.
As has been said above, the lower age limit for accessing a private pension is increasing. For me, it was 55 but now it's 57. It won't stop there.
Anyone who in their 30s or 40s who is planning to retire at 57 should ensure that they have some funds outside of their SIPP to bridge the gap
This has always been my plan (I'm 32) to not put all my eggs in one basket with a Pension. I am paying a lot into my pension, certainly a lot more than my peers typically are. That said I don't trust the government or future governments to move the goal posts before my retirement. There's a good chance they'll limit the ISA allowances at some point too but make hay while the sun shines and all that.As has been said above, the lower age limit for accessing a private pension is increasing. For me, it was 55 but now it's 57. It won't stop there.
Anyone who in their 30s or 40s who is planning to retire at 57 should ensure that they have some funds outside of their SIPP to bridge the gap
Considering I'll be taxed an unknown amount on the funds I draw down from my pension it feels prudent to put some into ISAs as well as a pension fund
alscar said:
Its " only " 3 extra years to wait and only applies for those fortunate enough to be able to retire "early " with a private pension.
The limit is currently 55 and I don't recall too much public outrage when this was increased wef April 2028.
Does it affect you? The people I know who are affected by it are pretty pissed off. The limit is currently 55 and I don't recall too much public outrage when this was increased wef April 2028.
My guess is now that more people are on DC pensions instead of DB pensions, there's a risk they'll be drained between 58 and 68, putting more reliance on the state pension to be increased for later years.
I'm nearly 50, so this will directly effect me, but it seems like a sensible thing to do. I've always thought it odd there's two pension ages anyway.
I'm nearly 50, so this will directly effect me, but it seems like a sensible thing to do. I've always thought it odd there's two pension ages anyway.
Essarell said:
I wonder if it s because we are losing so many experienced / skilled workers from the workforce?
Whatever the reason it s dangerous territory to install mistrust in pensions and will only lead to a rush for the departure lounge to beat any retrospective meddling.
People are living longer and starting work later, currently 280 pensioners for every 1000 workers and this gap is only going to get smaller. Plus a low birth rate will make matters worse. We need workers/tax payers to pay for pensions, even 'private' pensions. Whatever the reason it s dangerous territory to install mistrust in pensions and will only lead to a rush for the departure lounge to beat any retrospective meddling.
I can see the state pension age going to 70 in the next decade or so as well.
Essarell said:
alscar said:
Its " only " 3 extra years to wait and only applies for those fortunate enough to be able to retire "early " with a private pension.
The limit is currently 55 and I don't recall too much public outrage when this was increased wef April 2028.
Does it affect you? The people I know who are affected by it are pretty pissed off. The limit is currently 55 and I don't recall too much public outrage when this was increased wef April 2028.
My point was more that for many people its simply not an issue hence the public outrage comment.
Their argument is that people don't save enough for retirement. And if they draw it too early the money will run out and they will need to rely more on the state.
I doubt that happens with many people. Most who access private pensions in their 50s don't have much in their pot anyway. They take the cash to pay for things. My brother was 55 last year and closed his private pension. There was about 13k in it I think. And those who do intend to use private pensions to live on in retirement often plan carefully and have enough to cover it.
I wonder if the same age rules will apply to public sector where you can still take early retirement at 55? It certainly should.
More of a worry is the increase in state pension age. I'm due mine in 2039 at the age of 67 but I won't be surprised if the increase to 68 gets brought forward.
I doubt that happens with many people. Most who access private pensions in their 50s don't have much in their pot anyway. They take the cash to pay for things. My brother was 55 last year and closed his private pension. There was about 13k in it I think. And those who do intend to use private pensions to live on in retirement often plan carefully and have enough to cover it.
I wonder if the same age rules will apply to public sector where you can still take early retirement at 55? It certainly should.
More of a worry is the increase in state pension age. I'm due mine in 2039 at the age of 67 but I won't be surprised if the increase to 68 gets brought forward.
They really should think very carefully about putting a whole generation off pension saving - I fear that would be a mighty mistake for any Government to make and we'd end up in a worse place as a country ~20 years down the line because of it. There seems to be a desire to implement policies that objectively put people off saving for their future.
I'm not sure it changes my actual plan though - The pension remains the best vehicle for reaching check-out-money imho (whether at 57 or 60) - And I've consistently favoured my pension over ISAs / paying off the mortgage in the last few years.
If I was ~5 years away and the goalposts moved, I think I would be rightly aggrieved and I can imagine that many thousands of workers would agree?
I'm not sure it changes my actual plan though - The pension remains the best vehicle for reaching check-out-money imho (whether at 57 or 60) - And I've consistently favoured my pension over ISAs / paying off the mortgage in the last few years.
If I was ~5 years away and the goalposts moved, I think I would be rightly aggrieved and I can imagine that many thousands of workers would agree?
fat80b said:
They really should think very carefully about putting a whole generation off pension saving - I fear that would be a mighty mistake for any Government to make and we'd end up in a worse place as a country ~20 years down the line because of it. There seems to be a desire to implement policies that objectively put people off saving for their future.
I'm not sure it changes my actual plan though - The pension remains the best vehicle for reaching check-out-money imho (whether at 57 or 60) - And I've consistently favoured my pension over ISAs / paying off the mortgage in the last few years.
If I was ~5 years away and the goalposts moved, I think I would be rightly aggrieved and I can imagine that many thousands of workers would agree?
Unfortunately I think that ship has sailed already with people being put off pension saving and thats assuming they can afford to.I'm not sure it changes my actual plan though - The pension remains the best vehicle for reaching check-out-money imho (whether at 57 or 60) - And I've consistently favoured my pension over ISAs / paying off the mortgage in the last few years.
If I was ~5 years away and the goalposts moved, I think I would be rightly aggrieved and I can imagine that many thousands of workers would agree?
HMG seems to have a totally uncoordinated thinking on the subject.
Retrospective moving of goalposts is part of what they do and private pensions are an easy target.
Look at Rachels inclusion of unused pots iro IHT - many albeit perhaps fortunate people saw reasons for transfer disappear overnight as such.
bennno said:
In my case personal pension access has already gone from 50 to 55 to 57, it is muted to be going 58 - I suspect the 60 is just to make people accept a very short term change to 58.
With the tax / inheritance changes introduced imho you d be better using ISA accounts .. can t see why anybody would invest hugely in a pension.
The tax benefits are the main reason for doing it - and not just the tax relief on contributions.With the tax / inheritance changes introduced imho you d be better using ISA accounts .. can t see why anybody would invest hugely in a pension.
e.g. if a 120k earner with children in nursery was putting 21k (taking gross below 100) into an ISA instead of a pension would be foolish.
You can guarantee that state employees will still have the option of retiring at 55 or whatever they currently offer - I think my wife’s fund still offers 55 and her private pension age is 57 (for now). And given that the majority of Labour voters won’t wouldn’t be affected by this I’m almost certain that raising the private pension age will be on the agenda.
Certain industries have mandatory retirement ages that are now well below state retirement age, so that means a bridge would be required if they ever decided to match private and state ages.
Pensions really aren’t something that governments should be allowed to fiddle with.
Certain industries have mandatory retirement ages that are now well below state retirement age, so that means a bridge would be required if they ever decided to match private and state ages.
Pensions really aren’t something that governments should be allowed to fiddle with.
k up everything so people get that fed up they will retire early then cut that off too!Gassing Station | Finance | Top of Page | What's New | My Stuff