UK workers could eventually have to wait until 60 to access private pension savings, former pensions minister Sir Steve Webb has warned, amid debate over the future of retirement rules. But there is no confirmed government policy setting the private pension access age at 60; the change already written into law is an increase from 55 to 57 from 6 April 2028 for most pension savers.
The distinction is important for millions of people planning their retirement. The age of 60 reported by The Telegraph is a warning about what could happen under future policy, rather than a rule that workers currently face.
Sir Steve, who served as pensions minister between 2010 and 2015, raised concerns that future governments could further restrict the age at which people are allowed to access pension savings.
The Telegraph quoted him as saying there was “no fondness for pension freedoms in the Labour Party”.
However, savers should not interpret his comments as an announcement that the Government has decided to raise the age to 60.
What is actually changing in 2028?
The normal minimum pension age, known as the NMPA, is currently 55 for most registered pension schemes.
It is the minimum age at which most people can normally take benefits from a private or workplace pension without the payment potentially being treated as an unauthorised pension payment for tax purposes.
From 6 April 2028, that minimum age will rise from 55 to 57. The change is already provided for in legislation.
The Government first announced the planned increase in 2014, when it said the private pension access age would rise alongside changes to the State Pension age.
There is another important qualification: reaching the NMPA does not necessarily guarantee that a saver can take every pension at that age.
Individual pension schemes can set their own retirement or benefit-access rules, and a scheme’s permitted age can be higher than the statutory minimum.
Likewise, people are not required to retire or withdraw their pension when they reach 55 or, from 2028, 57. They can continue working and leave their pension invested.
Who may still access a pension before 57?
Not everyone will be affected by the 2028 change in the same way.
Some savers have a protected pension age, meaning they may retain a legal right under a particular pension scheme to access benefits before 57.
HM Revenue and Customs says this protection applies on a scheme-by-scheme basis. Among the conditions, a saver generally needed to have an unqualified right under the scheme before 4 November 2021 to take benefits before 57, while the relevant scheme rules also had to meet specified requirements.
This means someone with several pension pots could potentially have protection on one pension but not another.
There are also separate provisions allowing pensions to be taken early because of ill health.
The 2028 NMPA increase also exempts members of the firefighters, police and armed forces public service pension schemes.
Workers should therefore check the rules applying to their own pension rather than assuming the same age applies in every case.
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Private pension age is different from State Pension age
Another area that can cause confusion is the difference between the private pension access age and the State Pension age.
They are not the same thing.
The State Pension age is currently being phased upwards from 66 to 67 between April 2026 and 2028, with the precise date depending on a person’s date of birth.
Under existing legislation, the State Pension age is also scheduled to rise to 68 between 2044 and 2046, although the Government is reviewing the longer-term timetable.
By contrast, the confirmed normal minimum age for accessing most private pensions will be 57 from April 2028.
There is no current law saying that this private pension age will become 60.
Sir Steve’s warning is therefore about the possibility of a future government deciding to make another increase.
What should workers do?
People approaching retirement should check when they can access each pension they hold and whether they have any protected pension age.
Anyone planning to take pension benefits around 2028 should pay particular attention to the 6 April 2028 change, especially if they will be aged 55 or 56 at that point.
They should also avoid making rushed financial decisions simply because of predictions that the age could eventually rise to 60.
For now, the position is clear: 55 remains the normal minimum pension age for most savers, it will rise to 57 on 6 April 2028, and 60 remains a possible future scenario raised by Sir Steve Webb rather than an announced government policy.
