Private pension withdrawal age to be raised

15 Sep 2020

The Treasury has confirmed that the minimum age for private pension withdrawals will increase from 55 to 57 in 2028.

Pension reforms made under Chancellor George Osborne meant private savers could access their savings pots before State Pension retirement age.

At the time it was intended that the age restriction should be linked to be ten years behind the State Pension age, which is currently 65 but is rising to 66 this October and to 67 between 2026 and 2028.

In a statement to Parliament, John Glen, Economic Secretary to the Treasury, 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.'

Currently, savers can take some or all of the cash held in private pension pots at age 55, including taking 25% of their savings tax-free.

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