Minimum Pension Age Change

From 6th April 2010 the minimum pension age is set to increase from 50 to 55.

This will apply to all types of pension whether they are personal or company arrangements.

Some pension members will, however, still be able to retire from age 50 and these include:

• Members with a contractual right to retire before age 55
• Special Occupations

For most of us 55 will be the earliest we can retire from April 2010. Those people that reach age 50 before 6th April 2010 have the opportunity to access their pensions before the increase takes place;  however, the benefits must have been paid out before 5th April 2010. Therefore it is unlikely that someone who reaches age 50 on 5th April 2010 will be able to draw their benefits in time.

This change in rule also applies to people who have Self Invested Personal Pensions and may already be drawing benefits using Unsecured Income.

If you are over 50 or will reach age 50 before next April and you were intending to retire early you need to start planning this now or you might have to wait until you are 55.