Over a million people may have to wait two years longer than expected to access their private or workplace pension, an expert has warned. The 'normal minimum pension age' is rising from 55 to 57, a change that will take effect overnight on April 6, 2028.
Former pensions minister Sir Steve Webb, now a partner at LCP, explained that this change could affect anyone born between April 6, 1971 and April 5, 1973. For some, there will be a one-day window to access their pension before facing a two-year delay.
Sir Steve said: 'Suppose, for example, that you were born on 5 April 1973. In this case you will reach age 55 on 5 April 2028 and can therefore immediately access your pensions on your 55th birthday. However, if you miss that day (perhaps because you are busy celebrating your birthday) you will wake up the next morning to find that you now cannot touch your pensions for another two years.'
There are exceptions where the normal minimum pension age will remain at 55, depending on whether the pension scheme rules specifically mention 'age 55' rather than the current normal minimum pension age. Sir Steve urged savers to be careful when transferring pensions, as a protected pension age can be retained if the new provider is aware and has the right administrative systems.
The changes do not affect the state pension.
