Accessing your private pensions at 57 rather than 55.
Every client’s financial journey is different, but did you know about the government’s plan that was set out in 2014 to raise the minimum age you can access your private pension benefits will be increasing from age 55 to 57 in 2028 has now come into fruition.
The increase in access age 55 to 57 has been put in line with those who are to receive their state pension at the age of 67, this is age increase is designed to stay inline each 10 years e.g. for those expected to receive their state pension at age 68 can expect to be able to access their private pensions at 58. The increased age for accessing your pension is all down to living longer.
As a population, with advances in medical science we are in the main living longer which has been putting pressure of the UK’s government in terms of funding. Historically the state pension was set at 65 as life expectancy was broadly similar albeit by a few years, in short, the state pension would only have paid out for a couple of years.
By claiming a state pension at age 65 you could in theory be receiving this for the next 30 years. Planning your retirement has never been filled with more challenges if you feel you may be affected by these changes and want to know what you can do give us a call.