For those of you born in 1972, you may be wondering when is your retirement age?
There have been many changes in the last few years in terms of the age at which people can draw their State pension in the UK. Pension ages started at 60 for women and 65 for men but have already been equalised upwards for women and now both men and women are faced with retiring at ever higher ages. Read More
If you were born in 1971 then you may be wondering when your retirement age is. And in this context we are talking about the age that you can take your State pension benefits in the UK.
There have been quite a few changes to retirement ages since the state pension was introduced when men retired at 65 and women retired at age 60. Since then retirement ages have been equalised between men and women and also increased. Read More
The subject of retirement ages has become very complicated in recent years as the government sets out to equalise state pension ages between men and women. So if you were born in 1970 then you may be wondering when is your retirement age?
Initially men and women had retirement ages of 65 and 60 respectively but the retirement age was changed for women to 65 and subsequently for both men and women has been increased beyond this. Read More
When Can I Retire?Were you were born in 1969 and you are wondering when you can retire?
Well it firstly depends on whether you are thinking about when you can take you personal or occupational pension benefits, or whether you are wondering when you can claim your state pension.
For non-state pension benefits, the minimum age at which you can start taking your money out is age 55 (apart from special situations like in serious ill health when other rules may apply). Although for some pensions you may not get penalised for taking benefits early so you may wish to wait as long as possible before claiming pension benefits. Read More
In his budget today George Osborne, Chancellor of the Exchequer, announced a new Lifetime ISA which was aimed at helping younger people to save more for their retirement (or for a first home purchase). The age at which the proceeds of the Lifetime ISA could be taken for retirement purposes (if the government bonus was included in the proceeds) was set at age 60.
For this reason we are asking ‘is the minimum retirement age going to increase to age 60?’ This new product could well be the start of the introduction all round of a pensions style ISA. It is only available to those who are under the age of 40 so is aimed at younger savers initially.
Currently, the minimum age for taking savings from a personal pension is age 55 so the logical question to ask is will this be increased to age 60 at any time soon? The answer we believe is probably yes. It may not be in the next couple of years but it seems very likely that in the medium term the minimum retirement age will be 60, if not even higher.
Retirement ages are likely to keep in line in some way at least, with the increase in the State Pension Age, so increases are likely to come on an ongoing basis, although the highest state pension age announced so far is 68, so it may be some time before the minimum pension age is increased past age 60.
The fact that the Lifetime ISA has been introduced with a retirement age of 60 may indicate that it is not to long for other financial products to follow suit.
However, it is only possible to save £4,000 a year into a Lifetime ISA so it is also possible that there is a bit of a way to go before this replaces the current pensions system, if indeed it does. Contribution limits would need to be increased to enable people to save up a reasonable amount of money for their retirement.
Anyone who is eligible for the Lifetime ISA in 2017 is going to have a state pension age of 68 (or possibly 67+ if they were born in 1977/78) so they would be eligible to withdraw their savings around 8 years before their state pension was due for payment. Some may have an even higher state pension age if those are increased in future years.