You can typically start withdrawing from your private or workplace pension from age 55, while the State Pension can only be claimed once you reach your State Pension age.
Understanding when you can access your pension funds depends on the type of pension you have. There are key differences between private/workplace pensions and the State Pension, with varying ages and future changes to consider.
Private and Workplace Pensions
For most workplace and personal pensions, you can generally begin taking money out once you are 55 years old or older. This age is set to increase in the coming years.
Important Age Changes
It's crucial to be aware of the upcoming change to the minimum age for accessing private and workplace pensions:
- Current Age: 55 years old
- Future Age: This will rise to 57 years old from April 2028.
This means if you are planning to access your pension close to the current minimum age, you should be aware of this change, as it could affect your plans depending on when you reach that age.
State Pension
The State Pension is a separate government-provided benefit and cannot be claimed before you reach the specific State Pension age. This age is also undergoing changes.
State Pension Age Progression
The State Pension age is currently 66, but it is set to increase in stages:
| Pension Type | Current Withdrawal Age | Future Withdrawal Age |
|---|---|---|
| Workplace/Personal Pension | 55 | 57 (from April 2028) |
| State Pension | 66 | 67 (by 2028), then 68 (by 2028, details vary) |
- Currently: The State Pension age is 66.
- Rising to 67: The State Pension age is set to increase to 67 for those born on or after April 1960. This change will be fully implemented by 2028.
- Rising to 68: Further increases are planned, with the State Pension age rising to 68 for those born on or after April 1977.
For detailed information on various aspects of pension planning and withdrawal, you can refer to guides provided by reputable financial institutions like Legal & General Pensions Guides.
Practical Considerations for Pension Withdrawal
- Planning Ahead: Knowing these ages allows you to plan your retirement finances effectively. Consider how these age thresholds align with your personal retirement goals.
- Financial Advice: It's often beneficial to seek financial advice to understand the best way to access your pension, considering tax implications and your long-term financial needs.
- Pension Rules: Each private or workplace pension scheme might have its own specific rules regarding how you can take your money (e.g., lump sum, regular income, or a combination).
