Pension Age Change – Ignore It and You Could Lose Out
2 February 2010
Important legislative changes to pensions - The minimum retirement age will increase from 50 to 55 on 6th April 2010.
At the moment it is possible to use your pension to provide a tax-free lump sum and/or an income at any time after you reach the current minimum retirement age of 50. You don’t even need to stop working to do this.
However, if you are over 50, or will be by 5 April 2010 – and you do not access your pension benefits by 6 April 2010 – you will not be able to take out any money from your pension fund until you are 55, up to five years away.
This simple fact could have significant consequences for you, in particular if you needed funds for a specific purpose before your 55th birthday; for example to help a child going off to university, finally taking that dream holiday, or paying off the mortgage.
The good news is that you still have options that let you retain this financial flexibility. Alerting you to this change now, means you have ample time to take financial advice and make any necessary changes to your financial plans before the 5 April 2010 deadline.
We would like to point out that Ashton Morton Slack are Lawyers, not financial advisers. We have, however, established Northchurch Financial Services Ltd in order to provide truly independent, quality, unbiased, financial advice.
For further information about this alteration of pension plans, or for any pension advice, or any further information about how Northchurch Financial Services Ltd can help you, contact Jill Beckett on: Tel No: 0114 2286017.