16 May 2024
In April 2028, the government is raising the minimum age when people can start taking their pension benefits from age 55 to 57. The last time it changed was in 2010, when it went up from 50 to 55.
However, some pension savers have a protected pension age (PPA), which means they’re not affected by this latest change (although it’s important to note that you can lose your protected status in certain circumstances*).
How do you know if you’re affected?
- If you joined the Roche Pension Fund after 4 November 2021, your minimum retirement age is 55 and it will rise to 57 from 6 April 2028.
- If you joined the Fund between 6 April 2006 and 3 November 2021, you have a PPA of 55 – so you won’t be affected by this change.
- If you joined the Fund before 6 April 2006, you have a PPA of 50. This means you weren’t affected the last time the minimum pension age went up (from 50 to 55) and you won’t be affected this time around either.
What does this mean in practice?
If you were born on or after 6 April 1973, and you don’t have a PPA, you’ll have to wait until you reach age 57 before you can take your benefits (unless you’re retiring early due to ill health).
If you’ll be aged between 55 and 57 on 6 April 2028 and have already started planning for early retirement, you may need to adjust your plans. If you don’t have a PPA and don’t take your pension before 6 April 2028, even if you’re 55 or 56 at the time, you’ll have to wait until age 57.
*There are certain circumstances where you can lose your PPA status, such as if you transfer your pension out of the Fund. If you have a PPA of 50 and transfer out, you may still be eligible to retire at 55, but if your PPA is 55, then you will have to wait until 57 to draw your benefits (unless you’re retiring early due to ill health). It’s also important to note that if you have benefits in both the DB Section and the DC Section of the Fund, you may lose your PPA if you don’t take them at the same time. So, before you make any decision about taking your Fund benefits, make sure you understand the impact of your choices on your PPA.