The UK government has confirmed that savers will be able to access their pensions at age 57, rather than the current 55.
The change, however, will not take place until 2028, which gives people time to plan accordingly.
The government started working towards the increase to the pension freedoms access age six years ago.
The confirmation came from economic secretary to the Treasury John Glen, who said: “In 2014, the government announced it would increase the minimum pension age to 57 from 2028, reflecting trends in longevity and encouraging individuals to remain in work, while also helping to ensure pension savings provide for later life.
“That announcement set out the timetable for this change well in advance to enable people to make financial plans and will be legislated for in due course.”
Clarity needed
But Steven Cameron, pensions director at Aegon, said that while the age increase was revealed in 2014, the government did not include any provisions or legislation in its measure at the time, “leading to uncertainty over whether the change was still planned”.
He continued: “This latest announcement confirms the change will happen, meaning those retiring in future will have to wait longer to access their pension.
“It will be particularly impactful on those who were due to reach their 55th birthday just after the cut off, sometime in 2028.
“It’s now imperative that both government and industry make sure this change is clear to all those saving in pensions.
“We can’t afford a repeat of the government communication gaps which left many women to find out too late that their state pension age was increasing from 60 to 65,” Cameron added.
