Your resolution for 2021 – become acquainted with your pension age(s)
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Your resolution for 2021 – become acquainted with your pension age(s)
Last October, phased increases to the State Pension age (SPA) reached 66 for both men and women, with further rises in the pipeline. And did you know that the minimum age for taking funds from a personal pension is also scheduled to rise in 2028? Taking the time to become familiar with your pension ages, and what you can expect to receive, is an essential step in creating your plan for retirement. The easiest way to find out your State Pension age is by visiting the government website www.gov.uk/state-pension-age.
The State Pension – is paid to anyone who has made at least ten years’ worth of National Insurance contributions during their working lifetime. At present, the maximum payment is £175.20 a week (£9,110.40 a year), but how much you get depends on how many years you contributed for. Some people who have accrued Additional State Pension may get more than this ‘maximum’. To check your State Pension forecast, go to www.gov.uk/check-state-pension.
Personal pensions – including workplace or individual personal pensions, can currently be accessed by savers at age 55. However, last September, the government confirmed this would rise to 57 in 2028. Prompted by increased life expectancy, this change will mean that those who are currently aged 47 or under and wish to pursue this option will have to wait an extra couple of years to do so.
It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor. No part of this document may be reproduced in any manner without prior permission.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. If you withdraw from an investment in the early years, you may not get back the full amount you invested. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency.
Information is based on our understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change.
Tax treatment is based on individual circumstances and may be subject to change in the future.
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