03 March 2023 , 12:41
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The age for when you can access your private pension is rising by two years, meaning millions will have to wait longer to access their retirement cash.
The minimum pension age is currently 55 years old and is due to rise to 57 in 2028.
This is the age where you can access any private pensions you may have - not your state pension - without paying a penalty.
After 2028, the Government plans to keep the minimum pension age around 10 years earlier than the state pension age.
This would mean the minimum pension age could rise again to 58 years old by 2034.
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Interactive Investor analysis highlighted how this would only give savers 11 years to adjust their pension plans or invest on the basis of the new rules.
Interactive investor personal finance editor, Alice Guy, commented: “The increasing private pension age will make it significantly harder to retire early.
“People make retirement plans decades in advance and rely on the current rules for their planning.
“Changing your retirement plans isn’t always easy – people set their heart on a certain retirement date and press on, perhaps in a tiring role or with health problems, with that date in mind."
Your state pension age is different to your minimum pension age.
The state pension can be accessed by anyone once they reach a certain age, providing they have enough years of National Insurance contributions.
The current state pension age for women and men retiring now is 66, but it will rise to 67 between 2026 and 2028.
A further increase to 68 was not due to happen until 2046 - however, a review released in 2017 called for this to be brought forward.
The review argued the state pension age should hit 68 between 2037 and 2039 due to people living longer.
But over the last few weeks, reports suggest the Government is considering making the change even earlier, in what could potentially see the state pension age hit 68 by 2034.
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Of course, we don’t know for sure if this will happen yet, so it is important to keep an eye on the latest Government developments.
The full new state pension is worth £185.15 per week. This is rising to £203.85 from April 2023.
You normally need 35 years' worth of National Insurance contributions to get the full state pension, and ten years to get anything at all.