Finance Bill representation: Normal minimum pension age

Published on 10 December 2021

The normal minimum pension age is the earliest point at which most people can access their pensions without incurring an unauthorised payment tax charge. It is currently set at age 55 and this legislation will increase it to 57 with effect from 6 April 2028. There are exceptions for those who have a protected pension age, work in certain professions (such as sportspeople) or who take their pension due to serious ill-health.

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LITRG’s main concern with the proposal is not with the legislation itself, but with the transitional arrangements for the change. To plan properly for the change, people will need to know exactly what is going to happen and when. It is essential that government and pension providers produce clear guidance about the changes and that both are proactive in alerting pension savers to the change.

The explanatory notes accompanying the draft legislation say that “the government will provide further advice on the proposed transitional arrangements and provisions in due course”. However, there is no indication of when exactly this further information will be available. LITRG’s briefing note therefore emphasises the importance of providing the promised further information by the end of the current Parliament.

LITRG’s full briefing note can be found here.

Contact: Kelly Sizer (click here to Contact Us)
First published: 10/12/21

 

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