Private pension age to rise from 55 to 57 as millions in their 40s to wait longer for funds

4 September 2020, 12:09

The private pension age is increasing (stock image). Picture: Getty

The government has announced that workers will have to wait until they're 57 to access savings from 2028.

Millions of people in their forties will have to wait an extra two years to access their private pension fund.

The government has announced that - from 2028 - workers will have to wait until they're 57 to access the cash, which is an increase of two years from the current age of 55.

According to a report by The Sun, the move was first announced in 2014, but it was revealed today by John Glen, economic secretary to the Treasury, that it will be put into legislation in 'due course'.

The new rule will come into force in 2028 (stock image). Picture: Getty

Mr Glen said in a written ministerial statement: "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."

Steven Cameron, pensions director at Aegon, added: "This latest announcement confirms the change will happen meaning those retiring in future will have to wait longer to access their pension.

The new rule will affect millions of workers in their 40s (stock image). Picture: Getty

"It will be particularly impactful on those who were due to reach their 55th birthday just after the cut off, sometime in 2028."

The rise applies to private pensions, which includes most workplace pensions such as defined contribution (DC) pensions, and defined benefit (DB) schemes.

Personal or stakeholder pensions also apply, according to the report.

It has been claimed that around 860,000 workers who are now aged between 46 and 57 will be hardest hit, as they will turn 55 in 2028.

NOW READ:

Parents in the UK spend nine days a year trying to get their kids to bed, research finds