The age when you can start accessing your private pension is due to increase to 57 (from 55) from April 2028. However to avoid confusion and the potential risk of fraudsters exploiting this change, the Government has closed a loophole in its plans to raise the minimum pension age from 55 to 57.
Under the initial plans, people affected by the change who transferred to a scheme with a ‘protected pension age’ by April 2023 could gain access at the lower age. However the ruling is that ‘unless you are currently in the middle of arranging a pension transfer, the option of doing this to still benefit from an age 55 threshold has been removed’. This change will apply to most pensions, but not members of certain public service pension schemes or others who have a specially protected pension age.
However, industry critics warn there could still be potential pitfalls for savers affected by the change as to when they can first make withdrawals from private pension pots.