WHAT IS THE Pension Age?
Currently, it is possible to access a private pension when you turn 55, whereas, by 2028, that age barrier will be moved to 57. State Pension age is also on a path to increase and by 2028, it is expected to be 67. Once you reach retirement age, you can opt to keep working and retire at a different point in time.
What's the UK's State Pension age?
For many years, the state pension age was 60 for women and 65 for men. That recently changed and the UK state pension age in the UK is 66, both for men and women. By 2028, the UK state pension age will rise to 67.
Those that will opt to keep on working after they reach the UK state pension age won’t need to make any additional national insurance contributions. That means you get to keep a higher percentage of your wages. Plus, by postponing your retirement and drawing your pension, you will become eligible for additional money when you eventually decide to retire.
At what age can you withdraw money from your personal pension?
According to the current pension laws, you become eligible for withdrawing money from your personal pension when you turn 55. That age threshold will be 57 by the time you reach 2028.
Under the new pension freedom guidelines, you have many options on what to do with your personal pension pot after you reach the needed pension age. You can cash in parts of your fund and leave the rest in the pot, cash out some of it and buy an annuity with the rest of it, or cash it out in full. Whatever you do, you need to be aware of the tax implications that follow that decision.