Minimum private pension age could rise from 55 to 57, affecting millions of savers

2 March 2020, 12:54

There is speculation the minimum private pension age could be put up to 57
There is speculation the minimum private pension age could be put up to 57. Picture: Getty
Alice Dear

By Alice Dear

There could be some changes made to private pensions amid rumoured new treasury plans.

The minimum age people with private pensions can access their savings is currently 55-years-old.

However, there is now speculation it could rise to 57 as The Sun report Chancellor of the Exchequer, Rishi Sunak, is "under pressure" to raise the age.

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In April 2015, it was confirmed the minimum age would be 55, with George Osborne saying at the time that it would raise by two years by 2028.

The minimum age people with private pensions can access their savings is currently 55-years-old
The minimum age people with private pensions can access their savings is currently 55-years-old. Picture: Getty

However, this change could be moved forward as concerns are being raised that people are spending their savings too quickly.

According to the Daily Mail, some organisations are looking to get the government to bring the age up to 57 sooner to protect people from spending their savings too fast.

At the moment, speculation aside, the age rise is still timetabled to happen in 2028.

A Treasury spokesman said: "The announcement of the minimum pension age rise to age 57 in 2014 set out the timetable for this change, and we will announce next steps in due course."

Partner at pension consultants Lane Clark & Peacock and former pensions minister Steve Webb said in a statement: "It would be very unfair to make a sudden change to the age at which people can access their pensions.

"People need to be able to plan ahead and there is an existing timetable to raise the age to 57.

"Changing the age with immediate effect could force some people to work two years longer than they had planned."

Some savers might have to wait two more years before they can access their pensions
Some savers might have to wait two more years before they can access their pensions. Picture: Getty

People with private pensions aren't the only ones to be facing potential age rises, as state pension ages are also rising.

Between 2044 and 2046, the age at which people can access their state pensions will be increased from 66 to 68-years-old.

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