People have been able to access their private pensions at the age of 55 since 2015. But this week it was announced changes to the age private pensi
People have been able to access their private pensions at the age of 55 since 2015. But this week it was announced changes to the age private pensions can be accessed are to be introduced in the near future. In recent years people with defined benefit or defined contribution pension schemes have been able to take money from their pensions at the age of 55.
It is a personal choice how early access to pension funds are used, but some choose to retire early with these funds.
People are also able to access a 25 percent lump sum of their private pensions, tax-free, to use howsoever they wish.
In 2014, the Government announced the decision the private pension age would rise.
But for many years it has remained unclear exactly when the changes would come into place.
READ MORE: State Pension UK: Age increase occurs this weekend – are you affected?
The Government will no doubt hope to avoid the issues that arose following the State Pension age changes for women.
The 1995 Conservative Government introduced plans to raise the women’s State Pension age in-line with men’s to 65.
However as Women Against State Pension Inequality (WASPI) argue, many have been left in financial hardship due to the way the changes were implemented.
WASPI said: “Because of the way the increases were brought in, women born in the 1950s (on or after 6th April 1950-5th April 1960) 3.8 million women have been hit particularly hard.
“We are angry that we have been treated unfairly and unequally just because of the day we were born.
“Significant changes to the age we receive our State Pension have been imposed upon us with a lack of appropriate notification, with little or no notice and much faster than we were promised – some of us have been hit by more than one increase.”