Private pension withdrawal age raised to 57 by 2028

The Treasury has confirmed that the minimum private pension age will increase from 55 to 57 in 2028, meaning that savers in late forties and younger will now need to wait two years longer before accessing their pension.

When George Osborne was Chancellor and ushered in the pension freedoms which meant private savers could access their savings pots before state pension retirement age, he indicated the minimum age limit for doing so would be 10 years behind the state pension age, currently 65 but rising to 66 this October and to 67 between 2026 and 2028.

In a statement to Parliament John Glen, economic secretary to the Treasury, said: ‘In 2014 the government announced it would increase the minimum pension age to 57 from 2028, reflecting trends in longevity and encouraging individuals to remain in work, while also helping to ensure pension savings provide for later life.

‘That announcement set out the timetable for this change well in advance  to enable people to make financial plans and will be legislated for in due course.’

Currently, savers can take some or all of the cash held in private pension pots at age 55, including taking 25% of their savings tax free.

The age will be raised to 57 from 2028, meaning those aged 46 and below face having to rethink their plans if they had intended to use pension savings to clear a mortgage or take early retirement.