Minimum pension age increase to 57
5 November 2021, Advocates, Musicians, Sole Traders
Finance Bill 2021-22 includes minimum pension age increase
The government has published the Finance Bill 2021-22 (Finance (No. 2) Bill), which includes a clause to increase the normal minimum pension age from age 55 to age 57 from 6 April 2028. If you were born before 6 April 1973 consider whether you want to take your pension before the rules change.
Who is affected by the change?
Individual members of registered pension schemes who do not have a protected pension age but take scheme benefits before age 57 after 5 April 2028 or those who would like to have taken a benefit but will not be able to.
What is the current retirement age?
The rules at the time of writing are that the minimum pension age is 55. This means you can start to draw down pension funds when you reach 55. You can draw 25% of your pension pot tax free so this is a significant benefit to anyone who wants to take early retirement.
What do I need to do?
Speak to a an Independent Financial Advisor before you make any decisions about your pension. The consequences are far reaching! If you are going to be between 55 and 56 on 5 April 2028 consider whether you want to plan your pension draw down or wait up to an extra 2 years as the minimum pension age increases to 57.
