‘Worrying!’ say pensioners who are unaware of a rule change that could affect their access to cash.
PENSION CASH IS ESSENTIAL in retirement for Britons, but many are unaware of a significant rule change that could affect their ability to save.
The rules for pensions are about to change, but according to new research, a large number of people will be affected because they are unaware of the changes.
Normal Minimum Pension Age (NMPA) is a concern to be aware of.
This is the earliest age at which a person can expect to be able to access their retirement funds.
While the age limit has been 55 since 2010, the government intends to move forward with its plans to raise the age limit.
The National Minimum Pension Age (NMPA) will increase to 57 in April 2028, potentially affecting a large number of Britons who are saving for retirement.
The Pensions Management Institution (PMI), a trade group for pension workers, has expressed concern about a lack of awareness.
According to its findings, four out of five people in their forties are unaware that these changes are occurring.
As a result, when it comes time to withdraw from their pension fund, individuals may be in for a rude awakening.
To compensate for the upcoming change, many people may be forced to work an extra two years.
Only 4% of people aged 40 to 49 could correctly identify the current minimum age of 55, according to a survey conducted by the body.
Furthermore, 18% of those polled were aware that the NMPA was about to be increased.
“The results of this research are particularly concerning,” said Lesley Alexander, President of the PMI, “because they strongly suggest that the Government has failed to make the general public aware of a significant change in pension policy.”
“This comes just six months after the Parliamentary and Health Service Ombudsman found the Department of Work and Pensions guilty of maladministration for failing to give adequate notice of the change in state pension age for women born in the 1950s.”
“Another embarrassment is a distinct possibility.”
“It’s critical that the general public understands their retirement options.”
In November 2021, the government released a policy paper outlining the NMPA’s goals and identifying who might be affected.
“Individual members of registered pension schemes who do not have a protected pension age but take scheme benefits before reaching the age of 57 after.”
“News from the Brinkwire.”