The Government has confirmed that the minimum age for accessing personal pension savings will rise from the current age of 55 to 57 from 2028.
Treasury Minister John Glen MP said:
“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.
“That announcement set out the timetable for this change well in advance to enable people to make financial plans and will be legislated for in due course.”
With rising life expectancies, this will certainly not be the last announcement of this type the Government is likely to make.
Some industry commentators have called on the Government to ensure it clearly communicates the change to anyone whose 55th birthday occurs after 2028, as the change will affect anyone who is working at the moment and who is aged 47 or under.
Aegon pensions director Steven Cameron said:
“It’s now imperative that both Government and industry make sure this change is clear to all those saving in pensions.
“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.”
Newly published data from the Department of Work & Pensions shows that, in recent years, the average age at which someone retires has increased, as has the likelihood that someone aged 50 or over will be in work.
Currently, the average age of exit from work for a man is 65.2 years, compared to 63.3 in 2000. The average age of exit for a woman at present is 64.2 years, up from 61.2 years.
The ‘employment rate’ amongst 50 to 64-year-olds – the proportion of them who are in work – has risen sharply in recent years and now stands at 72.7%. The employment rate figure for the South East of England in this age group is as high as 76%. The nationwide employment rate in this age group is now only 13.3% below that for the 35 to 49 age group.
The employment rate for over 65s is 11.4%.
Older workers are more likely to be in part-time employment, but more than one in three (34.5%) of those aged 60 to 64 are in full-time employment, and this figure has risen by four percentage points over five years.
The information shown in this article was correct at the time of publication. Articles are not routinely reviewed and as such are not updated. Please be aware the facts, circumstances or legal position may change after publication of the article