The minimum age that most members can access their pension benefits is currently age 55, however, the Government is proposing to increase this to 57 from 6th April 2028. The Government have outlined their proposals in a consultation document which can be found on the government website.
In the consultation the Government propose that existing pension members, as at 11th February 2021, can have their retirement age of 55 protected for pension benefits in that particular scheme. Members do not need to do anything for this protection to be in place but do need to be able to draw their pension benefits at age 55 without any consent for example (from an employer, provider or trustee). Where a member transfers their pension to another scheme, the current proposals suggest that the protected retirement age of 55 would be lost. As this is a consultation, it is not certain that the Government will go ahead with their proposals as outlined.
Thinking of leaving us?
Your pension plan is just that - yours. It’s up to you if you wish to change providers. Any transfer out of your plan is free of charge. However, you may wish to check whether the plan or arrangement receiving the transfer will make a charge. The value of your transfer will reflect the value of your pension pot on the day we sell your investments to cash so that they can be transferred. If you’re thinking of moving your current workplace pension to a different provider, there are some important things you should consider. We recommend you seek financial advice on whether this is the best decision for you and your future.
Things to consider
- Remember, just because you’re leaving your employer, doesn’t mean you have to transfer out.
- Make sure there are no valuable benefits you may lose if you transfer.
- Compare the fees and charges of your new provider with those of your current pension.
- Ensure that your new provider doesn’t restrict some of your retirement options. Like the ability to take tax-free cash at age 55. This can be especially important if you’re retiring soon.
- If your pension contains certain benefits (usually a guaranteed income) you may need to take appropriate financial advice if you want to transfer out. We will inform you if this applies to you.
If you have any concerns about your proposed transfer, please call us on 0800 3 68 68 68 or contact the government's Pension Wise service, online at www.pensionwise.gov.uk or by phone on 0800 138 3944.