Pictured above: Kevin Jenkins
From 6th April 2010 the minimum age for taking a tax free income
or lump sum from a personal pension will increase from 50 to 55
years of age.
The legislation creating this change was put in place in 2006 as
part of 'A Day' which aimed to simplify the pension rules and has
different consequences depending on how a person chooses to take
their pension benefits.
Kevin Jenkins from Midlands based IFA firm, Key Financial
Management explained further: "This rule change effects those
people who are currently aged between 50 and 54 and had planned to
take their pension before they reached 55. Essentially, they
may have to defer their retirement for up to 5 years if they don't
act before 6th April 2010". Key Financial Management is a trading
name of 2plan Limited.
Retirement at earlier ages will still be possible on the grounds
of ill-health and for certain 'special' occupations. However,
for everyone else wanting to receive their personal pension
benefits before the age of 55 they will need to ensure that they
have started to receive them before midnight on 5th April 2010.
Jenkins concluded: "People still have ample time to make any
necessary changes to their financial plans before the 5th April
2010 deadline. However, before taking action with regard to
personal pensions or any other investments I would recommend for
people to obtain independent financial advice rather than seeking
advice from an adviser who is tied and can only advise on the
products of a limited selection of providers".