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Born after 5 April 1971?

14 September 2020

Retirement Savings

Increased minimum retirement age in pipeline from 2028

From 6 April 2028, anyone who has not previously taken pension benefits will not be able to do so unless they have reached age 57 – the new minimum pension age.

In his 2014 Budget, the Chancellor announced that the State Pension age will increase to 67 from 2028 and the minimum pension age for private pensions will be correspondingly* 10 years lower – increasing from 55 to 57. (*i.e. if the State Pension age later increases to 68, then the minimum pension age for private pensions will also increase, to 58 and so on.)

Although Government has not since brought forward any draft legislation to effect this change, economic secretary John Glen confirmed in response to a recent Parliamentary question that it will be going ahead and that government will legislate for it “in due course”.

Although it is not possible to be definitive until the draft legislation has been published, the following are the possible outworkings of the change:

  1. Born before 6 April 1971UNAFFECTED - as you will already have reached age 57 before the change comes into effect;
  2. Born from 6 April 1971 to 5 April 1973You will have to wait until age 57 unless you draw benefits no later than 5 April 2028 under the current age 55 rules;As was the case when the minimum pension age was previously increased from 50 to 55, it may be that drawing some pension benefit by 5 April 2028 will secure the right to draw further benefits after that date, even if age 57 has not been attained – but it is impossible to anticipate if this will be included in the new provisions.
  3. Born after 5 April 1973You will not have attained age 55 by the time the change takes effect and will therefore not be able to take any benefits until age 57.

The following is an example of the impact:

  • Born 1 January 1973
  • Benefits may be drawn from 1 January 2028 (age 55) until 5 April 2028; but
  • From 6 April 2028 – if benefits not already drawn, they cannot then be drawn until 1 January 2030 (age 57).

Anyone who has made plans, based on age 55, for example in relation to use of their retirement lump sum to pay off a mortgage or to fund education or housing costs for children, should check carefully how this change, if as outlined above when the legislation is published, will affect their plans.

This article is our interpretation of how the new rules could be drafted, taking into account the 2014 Budget statement and previous similar events. It has been issued to promote awareness and assist planning in advance of the change but cannot be relied upon as definitive as the relevant draft legislation has not yet been published. The article is for information purposes only – it is not advice and should not be construed as such. If advice is required, please speak to your usual Kerr Henderson consultant.


Who to contact

Mark Coulter





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