Today, the government assured that workers will need to wait until they turn 57 to receive personal pensions from 2028. Currently, the age a person can do this is 55 years old.
The anticipated change in Controlled Contribution (DC) pensions was confirmed today in a written ministerial statement issued by Treasury Secretary of the Economy John Glenn.
Workplace and state pensions are not affected by this change.
In a written statement, Glenn said: “In 2014, the government announced that it would raise the minimum pension age to 57 from 2028, reflecting longevity trends and encouraging individuals to stay in work, while also helping to ensure lifetime retirement savings.
“This announcement set the timetable for this change well in advance to enable people to draw up financial plans and legislation would be enacted in due course.”
Read more: How to check government pension age before this week’s increase
Stephen Cameron, Aegon Pension Director, has commented on the government’s assertion that the age of free pension will rise from 55 to 57 in 2028.
“The government has confirmed that it will go ahead with raising the age at which people can get their pension,” he said.
“Currently, with pension freedoms so popular, individuals can get their pension from the age of 55. This is set to increase to age 57 from 2028.
“ The government in 2014 indicated its intention to do so, but did not include provisions in the legislation, resulting in uncertainty as to whether or not the change was still planned.
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“This latest announcement confirms that change will happen which means that future retirees will have to wait a longer period to reach their pensions.
“It will have a special effect on those who were due to reach their 55th birthday soon after the hiatus, sometime in 2028.
“It is now imperative that both government and industry make sure that this change is clear to all of those who save on pensions.
“We cannot afford to repeat the government communication gaps that have left many women discovering too late that the state’s retirement age has risen from 60 to 65.”
However, the changes stipulated in the Pensions Act 1995 were accelerated by the Pensions Act 2011.
This means that parity in government pension age for men and women was reached in November 2018, before further changes were made.
For those who would like to verify the state’s retirement age, it is possible to do so online.
The State Retirement Age Check tool can be accessed via the government website.