Increase in Minimum Pension age confirmed
“The government … proposes to increase the age at which an individual can take their private pension savings at the same rate as the increase in the State Pension age.
It is important people have the opportunity to plan properly for this change and so the government proposes to wait until 2028 (when the State Pension age will rise to 67) to fully implement this change.
From 2028, people will not be able to draw their private pension benefits without a tax penalty until age 57, whether or not this is the point at which they stop work.
From then on, the minimum pension age in the tax rules will rise in line with the State Pension age so that it is always ten years below.”
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Do you know anyone who may be involved in a divorce?
I know its not usual to enquire about their financial settlement at an early stage.
It could be very helpful if you did, as it seems that a majority of divorcing couples are relying on their Solicitors to value the pension benefits.
As pensions are a very complex area of finance, with a wide range of rules and taxation, Solicitors are not generally understanding but instead are relying on the pension trustees or providers to supply the answers.
Clearly the pension trustees and, in some cases, the providers, have a vested interest.
It is important that specific pension advice is sought, to avoid costly mistakes.
We can help ask the right questions and get better, fairer outcomes.
I have only recently been told that the death benefits under NEST should have Nominations for Death Benefits added, as the fund otherwise would go to the member’s estate, where it could be subject to taxation.
As NEST pensions are the preferred pension for many employee schemes it would be helpful if you let any members of the family or friends know. It’s a simple matter to obtain a Nomination form directly from NEST
For those friends or family who are in employee schemes or have retained benefits, it is advisable for them to check the Scheme Rules.