Aged 48 or under? Your retirement plans might have changed.

February 18, 2021 - Matt Hughes

You may have missed in recent news that the age at which people can access their private pension money will change, raising the age from 55 to 57. This new rule will come in to effect in 2028, and it means that anyone currently 48 or under will have to wait an extra two years before they can access any of their private pension savings.

This will not be welcome news for many people, especially those who have smaller pension pots and plans to access some of their retirement cash to pay off debts, such as a mortgage.

It may be a change that goes unnoticed by those who are under the age of 48 and who may have a pension, but don’t have a firm grasp of how much they have saved or when retirement will be possible for them financially.

The good news is that this latest pension rule amendment won’t have a huge impact on those people who have robust financial plans that will carry them into the lifestyle they want in retirement. The new changes will be incorporated into your plans by your financial adviser, and simply reinforces the need for ongoing professional financial advice.

Do I need to take action?

If you already have a financial adviser and a plan for for retirement, then your adviser will be prepared for the rule changes.

If you are approaching retirement and you don’t have a clear plan in place about how you are going to turn your pension savings into an income, then it is important to seek advice now.

For many people, the time frame and amount saved into a pension plan suddenly becomes important when they reach their early 50’s. It’s often at that point when friends start talking about retirement plans, and people more urgently start to connect to their savings and to get a firm understanding of their pension balance sheets.

Contributing regular amounts as soon as you start working is the most effective way to invest and to save for retirement. Small contributions made early and left to grow over many number of years typically provide substantial returns. But for some people, especially the self-employed who can have fluctuating incomes, this isn’t possible and retirement saving comes hard and fast at a later date.

For those who are close to retirement, contributions made as retirement approaches have less time to grow. Many clients come to us at a later date knowing they need to save more quickly, but are unsure how or how much to invest.

Whether you are aged under 48 and the new changes to pensions could affect you, or if you are approaching retirement and would like some advice on how to save or turn your pension funds into a retirement income call 0116 269 6311 and ask to speak to one of our Financial Advisers or email

Past performance is not a reliable indicator of future performance.

The value of an investment and the income from it could go down as well as up. The return at the end of the investment period is not guaranteed and you may get back less than you originally invested.


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