The government has confirmed that it intends to go ahead with an increase to normal minimum pension age to 57 from 2028. Currently, pensions savings can be accessed from age 55 without incurring tax penalties. For individuals with defined contribution pensions, this can be attractive as the money accessed can be used to pay off any remaining mortgage or to help children obtain a foothold on the housing ladder.
The government had announced in 2014 that it would increase minimum pension age to 57 in order to reflect trends in longevity and to encourage individuals to remain in work. This was recently raised again in a question raised by Stephen Timms, a Labour MP and confirmed in a response from John Glen, Conservative MP.
Legislation introducing this change has yet to be introduced but it seems likely that the change will go ahead in due course. It remains to be seen whether this will make pension savings less attractive for those in their mid-40s or whether this cohort opts to save into a more accessible vehicle such as an ISA. The trade off will be between tax relief on pensions savings versus the ability to access your savings when you want to.
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.