News Article

The Rising Age of Retirement

If you are about to celebrate your fiftieth birthday or have done so in the last few years then you should be aware that from the 5th April 2010 the minimum age from which you can draw pension benefits will rise from 50 to 55 years old. Unless you take benefits before then you will have to wait until you are 55 years old which in some cases will be 5 years.

Fifty may sound rather early to retire but one of the recent changes in pension rules means that you can start to take benefits from your pension without actually retiring. For example you can take up to 25% of your fund as a lump sum with no tax payable on it to use as you wish - though you cannot recycle it into your own pension pot. And if you do not want to draw an income yet it can be set to zero, leaving the remaining fund invested. Taking pension benefits early is not appropriate for everyone, it is therefore essential that you take specialist financial advice before making any alteration to your pension arrangements.

If you think you will need to access some of your pension savings in the future, you may want to consider taking advice now. After the 6th April 2010 you will have to wait until you are at least 55. If you would like more information on the above or have any questions regarding your pension please contact Rowan for advice.

 

Posted on 02/10/2009 by Rowans Financial Planning