Getting to grips with your pension arrangements can be daunting and complex – particularly when national legislation changes.
Were you born after April 5th, 1973? If so, you will be affected by when you can start to draw down savings from your pension pots (subject to liability for tax).
Sheena prides herself on offering clear, concise and jargon-free information to help you ensure that your money is working as hard as it can for you.
Here she looks at the Government’s confirmation that the normal, minimum pension age will rise to 57 in 2028 (regardless of when you choose to stop work). Before then, it will remain at 55.
When was this change first announced? Back in March 2014, the then-Chancellor George Osborne delivered his Pensions Flexibility Budget. This was followed up a first consultation paper.
In that paper, the Government announced that it proposed to increase the age at which a person could take their private pensions savings so it kept track with the increase in the State Pension Age.
What was the purpose? The Government wants people to draw from their pension savings no earlier than 10 years before the State Pension age – regardless of when they intend to stop work.
This State Pension age is due to increase to the age of 67 in 2028.
Why was it delayed to 2028? The Government acknowledges that people need the opportunity to plan properly for any changes in legislation. These timescales allow for that planning process.
Is there a firm date? There is no confirmed date on the Treasury or Parliament websites currently but it seems probable that the change will take effect from April 6th, 2028. This will affect anyone born after April 5th, 1973.
What should I do next? There is no requirement to do anything, just to note the change.
However, it’s never to early – or late – to review your pension arrangements to help make your money work as hard as it possibly can.
Please contact Sheena today for a informal, Zoom “coffee and chat”
Sheena Doherty DipFA
Senior Wealth Management Consultant
Principal Partner Practice of St. James’s Place Wealth Management
Tel: 01422 893531
Fax: 0844 7741672
The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relied depends on individual circumstances.
Sovereign Wealth LLP is an Appointed Representative of and represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority). The ‘St. James’s Place Partnership’ and the titles ‘Partner’ and ‘Partner Practice’ are marketing terms used to describe St. James’s Place representatives.