POLL: Do you support increase to private pension age?

The state pension age is 66 for both men and women but Britons are able to access private pension pots years before. The normal minimum pension age (NMPA) is currently 55 but is due to rise in the next five years. Do you support an increase? Vote in our poll.

From April 6, 2028, the NMPA, set by the Government, is expected to increase by two years to 57 meaning generally you must be older than this to take money out of your pension. At this age, you can access the first 25 percent of your pension tax-free, but the remaining 75 percent is still taxable. Withdrawing money could result in a loss of some benefits with your provider.

Finance advisor MoneyHelper said: “If you’re a member of a workplace pension, you might need the consent of your employer or ex-employer to take benefits earlier than the normal pension age. This is more likely if you’re still working for them.”

READ MORE: State pension will undergo six key changes from next month

Many private pension plans will already have a pension age higher than the NMPA, with the average being between 60 and 65.

Conservative Government policy set by former Chancellor George Osborne means that workplace pension savings must be accessible 10 years before the state pension.

Partner at pensions consultancy LCP and a former pensions minister, Sir Steve Webb, described the increase in line with the state pension age “as night follows day”. But he warned thousands of retirement plans will be under threat by the changes to NMPA.

He explained: “Making people wait an extra three years for their pension will just add complexity to the system for no obvious benefit. The Government should leave the normal minimum pension age at 55.”

Chancellor Jeremy Hunt has claimed that over-50s should return to work to help tackle labour shortages. Steven Cameron, of pensions provider Aegon, said the increase in the NMPA could help drive this policy. He explained: “The Treasury wants over 50s to get off the golf course and back into work. That would be a key driver behind pushing up the minimum pension age, as it would help improve our economic activity”

So what do YOU think? Do you support increase to private pension age? Vote in our poll and leave your thoughts in the comment section below.