You’re not a pensioner yet
Good news; you’re not a pensioner yet….. (That’s only because pension age is going up – you’re still getting old.)
In March the Chancellor announced big changes to the pensions system in Britain allowing pensioners unrestricted access to their pension pots from April 2015. In the plans outlined, 25% of their fund will be accessible as a tax free lump sum, the remaining 75% at their marginal rate of tax.
Whilst the aforementioned has been a headline stealing proposal there are some other facts we should be aware of; the minimum pension age will rise from 55 to 57 by 2028, the state pension age is also set to rise in line with longevity, to 68.
The government have confirmed that the minimum age one may withdraw a private pension will always be 10 years below the state pension as it rises. As life expectancy continues to rise the state pension is set to follow the same pattern. For example, by 2028 the state pension age, which is due to equalise for men and women, will hit 67.
Young adults in their 20s will not be eligible for a state pension until they reach 70, furthermore as private pensions are set at 10 years below the state, they cannot access these until the age of 60.
This only emphasises the need to plan for one’s retirement, and to consider the many alternative investment products available to compliment your pension and achieve your financial goals.
To discuss your retirement further please get in-touch HERE