A date has been set for when the private pension age will rise by extra two years.
A phased increase in state pension age from 66 to 67 by 2028, and eventually 68, is already planned, but previously people with private pensions could cash in much earlier.
The Government set out two further increases for state pension in legislation: a gradual rise to 67 for those born on or after April 1960; and a gradual rise to 68 between 2044 and 2046 for those born on or after April 1977.
READ MORE: Full list of DWP cost of living payments available in March 2023
According to LeicestershireLive, private pensions can typically only be accessed when you are 55. The normal minimum pension age (NMPA), when you can access your private pension, is set by the Government.
But just as the state pension age is increasing in the coming years, so is the NMPA. From April 6, 2028, the NMPA will increase to 57. On this date you'll need to be this age or older before you can start taking money from your pension.
Before signing up, private pension plans lay out the age you can claim your pension without having to pay tax or fees, in most cases this is between 60 to 65. So, if you want to take money from your plan, you may have to pay early access charges.
You can usually withdraw the first 25% of your pot tax-free at 55 years old, however, the remaining 75% is taxable. Whether you pay tax and how much you pay depends on your specific circumstances.
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