Minimum retirement age impending increase surprises many Go compare with our comparison table

Minimum retirement age impending increase surprises many

18 January 2010 / by Andy Davies

A large proportion of Brits approaching retirement are unaware of the impending rise in the minimum retirement age, Prudential has revealed.

Nearly half of 45 to 49 year olds and two fifths of 50 to 54 year olds have confessed to being unaware that the minimum retirement age will increase from 50 to 55 on April 6 this year.

Prudential is warning that the forthcoming increase could be a particular blow to the 230,000 people aged between 50 and 55 who were planning to retire this year.

First announced by the Government in 2004, the new minimum retirement age will prevent many people aged between 50 and 55 from claiming private or company pension benefits, as well as preventing people from taking the tax-free cash element of their pension fund until they are 55.

Commenting, Karin Brown, director of annuities at Prudential said: "The Government first announced the changes to minimum retirement age nearly six years ago so there has been plenty of time for the news to sink in. It is worrying that so many are still unaware but there is time to act before rules change.

Ms Brown is now urging people who will be affected by the increase to speak to financial advisers and pension providers to discuss what options are available to them.

"People who want to take their pension benefits and any tax-free cash allowance still have nearly three months to decide what they want to do," she added.

© Fair Investment Company Ltd