Reaction to changes of minimum pension age
“This has obvious implications, such as if you are planning on phasing benefits with a drawdown arrangement. The new rules mean that after April you will be unable to take installments until you reach 55, unless you are already drawing your pension before the deadline. This also creates a dilemma for someone planning to pay off a mortgage with a lump sum from their pension commencement.
“Anyone thinking they might like to take their pension benefits before 55 must act now or face the imposed delay, the worst case scenario being a five year wait for those who have just turned 50. Those affected by these changes should speak to their professional advisor as soon as possible to develop a strategy to mitigate any issues with their retirement planning.”