Minimum Pension Age to increase from 50 to 55 as from April 2010 
Since April 2006, the minimum age from which you could take benefits from a registered pension scheme was age 50.

As from 6th April 2010 the minimum age will increase to 55.

How will this change affect you?

The effect of this change will depend on your age and whether or not you have started to take benefits from the pension. The categories are as follows:

1) If on 5th April 2010 you are aged 49 or below, the earliest you will be able to take benefits will be age 55.

2) If you are between age 50 and 54 on 5th April 2010 and you have not yet taken benefits, you could draw benefits immediately (provided you are aged 50) or at any time up to 5th April 2010. However, if you decide not to take your benefits before 6th April 2010, the earliest you will be able to take benefits after 5th April 2010 will be on your 55th birthday.

3) If you are between age 50 and 54 on 5th April 2010 and you have partially or fully taken benefits and/or you continue to contribute to your pension policy, any benefits not drawn by 6th April 2010 will not be able to be taken until you reach age 55. This does not affect your pension income already in payment, just new lump sums and the corresponding income.

What if you donít need an income from your pension just yet but would like to get hold of your Tax Free Cash entitlement?

If you are aged 50 or above there are ways of taking your Tax Free Cash lump sum now and taking the income at a later date when required. This may prove invaluable if you need your Tax Free Cash now. Remember after 6th April 2010 you will not be able to take any benefits from your pension until you reach age 55.
If you would like to learn more about your options at retirement click here .

Please contact us for further details and personalised illustrations.

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