Pension warning as little-known rule means you may have to wait longer to claim funds | Personal Finance | Finance

Britons planning to start drawing down from their pensions over the coming years may have to wait longer than expected.

Steven Cameron, pensions director at wealth firm Aegon, told Express.co.uk there is an important pensions rule change coming up that people may not be aware of.

He explained: “From 2028, you’ll not be allowed to take your private pension from age 55. The standard rule will be it will go up to age 57.

“I know that not everyone knows that. There may be some people out there who are planning to take their workplace or private pension from age 55 in 2029, let’s say.

“Once we get to 2028, there are many people who will won’t be allowed to do that, they’ll need to wait until they are 57.”

But he also warned people will need to check how this affects them individually, as the rules will vary.

He said: “It’s not cut and dry because the way the Government introduced this, if the scheme that you’re in or the provider that you’re with had written the rules in a particular way, then you might still be able to access from age 55.

“If the rules are written in a different way, you’re going to need to wait until age 57. The default is you’re going to have to wait until age 57.”

The increase in the normal minimum pension age (NMPA) is coming into effect from the start of the tax year in April 2028.

Some people have a protected pension age, allowing them to withdraw funds before the NMPA, and will not be affected by the increase.

Government advice on the increase states: “Members of the firefighters, police and armed forces public service schemes will not be affected by this increase.

“Scheme administrators of registered pension schemes will need to modify their systems to accommodate for these changes.”

The state pension age is also increasing over the coming years, with legislation in place for this to gradually increase from the current 66 to 67 between 2026 and 2028.

This set to go up again between 2044 and 2046, from 67 to 68, but the Government is considering bringing forward this timetable.

A review into the state pension age was published last year, with a decision on any changes to the policy due within two years of the next Parliament.

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