I thought long and hard about the title for this blog but kept coming back to the same title…mainly because its true. When we talk about planning, a plan does not have to necessarily be cast in stone or put down in writing, the plan may be quite a transient one that allows for things to change as and when that plan comes to fruition. A plan could be as simple as ‘I really want to go on Holiday next year’ or ‘I plan to paint garden shed next weekend’. These are both plans but the detail around where you might go on holiday or what colour to paint the shed are still to be decided.
In an announcement made in a consultation document published on 11th February 2021 by the Treasury, it was confirmed that the government is forging ahead with their plans to push back the minimum pension access age from 55 (currently) to 57 in 2028. The detail of this plan however is still to be decided as the government now needs to look at is how this increase might be implemented.
For those that are were planning to access their pension at age 55, this change by the government could cause an issue and therefore its best to plan around this change now rather than be disappointed that it cannot happen when you reach 55.
Under current legislation, the minimum pension age at which most pension savers can access their pension without attracting an unauthorised tax charge is currently 55 and has been since 6th April 2010. The proposed increase in age is not likely to apply to members of the firefighters, police, and armed forces public service pension schemes. There are however many trust based occupational schemes that have certain pension access rules in place, and these will need to be reviewed by the trustees of these scheme for the benefit of the entire membership in the very near future and certainly before 2028.
The government’s position is that they feel it is appropriate for the minimum pension age to be around 10 years under the state pension age (this will be 67 in 2028) although they have confirmed that they are not looking to automatically link the two…just yet…
As all employers in the UK must offer a Workplace Pension to satisfy automatic enrolment duties, it would be a recommended exercise to understand how these changes could affect your Workforce and ensure that a simple communication is issued to your employees explaining the change and directing them to your incumbent pension advisers for further guidance and advice.
If you do not use the services of a Corporate Pension adviser, now may be a good time to investigate this as the value it could add to your employee benefits offering could be vital in attracting and retaining quality staff. Advice and guidance on all aspects of an employer’s Workplace Pension is built into to Wingate’s Standard service proposition.
Should you wish to discuss any aspect of your Workplace Pension and the proposed changes highlighted above, please contact the team at firstname.lastname@example.org or on 01883 332260.