The age you can access your pension may rise. Could it affect your retirement?

In April 2028, the age you can usually access your pension, known as the “normal minimum pension age” (NMPA), will rise from55 to 57. So, if you hope to retire at 55, you might need to update your retirement plan.

Even if your planned retirement date seems faraway, creating a plan now could help you bridge a potential shortfall so you’re still able to give up work when you’re ready to.

As well as the NMPA, the State Pension Age is set to rise. From 6 May 2026, the age you can claim the State Pension will gradually increase from 66 to 67 in 2028 for both men and women. So, you might also need to factor in creating a larger income from your pension or other assets for an additional year before you can claim the State Pension.

Understanding your potential later-life incomecould help keep your retirement on track, even when policy changes.    

Thousands of retirees could be affected by the change to the normal minimum pension age

According to government figures published in October 2024, the median expected age to retire in the UK is65. If you’re among those who expect to retire at this age, the change to the NMPA may not affect you.

However, with around 10% expecting to retire before the age of 60, thousands of workers could find they need to delay their retirement if they can’t access their pension when they expect.

So, if you hope to retire at 55 or even earlier, here are four important steps that might allow you to do so.

4 steps you could take to prepare for the pension change

1. Check the details of your pension

While the NMPA applies to most pensions, there are some exceptions.

If you have an older workplace or personal pension, it may have a “protected pension age”, which might give you the right to access your savings earlier. So, it’s worth checking the details of your pensions before you make changes to your retirement plan.

2. Calculate your retirement income needs

The retirement lifestyle you want will affect how much income you need, and at what point you can afford to retire.

Thinking about your desired retirement lifestyle now could help you assess how you might retire at 55 if you cannot create an income from your pension straight away.

You might also want to consider how you’ll retire. More people are choosing to phase into retirement by gradually reducing working hours or moving to a role with greater flexibility.

According to a September 2024 article published by Global Recruiter, almost half of workers aged over 50 start to phase into retirement. Most of these workers plan to phase into retirement over a long period, such as 10 years.

A phased retirement might mean you’re able to move away from your current role sooner, so you have more time to focus on what’s important to you.  

3. Consider all your assets when making a retirement plan

Often, when you think about creating a retirement income, your focus is on your pension. However, other assets, such as savings, investments held outside of a pension, and property, may be useful, especially if you want to retire before the NMPA.

As your financial planner, we could work with you to create a long-term financial plan that brings together different assets to support you in reaching your retirement goals.

4. Schedule regular reviews

There are two key reasons why regular retirement plan reviews are important.

First, your circumstances and goals might change. Second, further changes in government policy could affect your retirement plans in the future.

Regular reviews provide an opportunity to ensure your plan is still appropriate and reflects your wishes and pension policy.

A retirement plan could keep your finances on track

Changes to the NMPA don’t automatically mean you need to update your retirement plan. However, being informed could offer peace of mind as you move towards the exciting milestone.

Working with a financial planner could help you assess how you’ll create an income once you step back from work and identify potential gaps. Please contact us to talk to one of our team about your retirement.

Please note: This blog is for general information only and does not constitute financial advice, which should be based on your individual circumstances. The information is aimed at retail clients only and is subject to change.

A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.  

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