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Pensions freedom age to increase from 55 to 57

On the go: The government has confirmed it will increase the age at which people can access their pension from 55 to 57 in 2028.

The government first indicated its intention to increase this age back in 2014 but did not legislate for it, leaving many across the industry to question whether the change would ever go ahead.

Under current pension freedom rules, which were introduced in 2015, individuals aged 55 and over can choose how and when they can access their savings.

In a written response to parliament on Thursday, economic secretary John Glen said the government will legislate for the pension freedom age hike "in due course". 

Steven Cameron, pensions director at Aegon, said: “This latest announcement confirms the change will happen, meaning those retiring in future will have to wait longer to access their pension.

“It will be particularly impactful on those who were due to reach their 55th birthday just after the cut off, sometime in 2028.”

But Mr Cameron warned the government to make sure all savers are aware of this change to avoid another state pension age change fiasco.

He said: “It’s now imperative that both government and industry make sure this change is clear to all those saving in pensions.

“We can’t afford a repeat of the government communication gaps which left many women to find out too late that their state pension age was increasing from 60 to 65.”

Plans to increase the state pension age were first announced in the Pension Act 1995, but these changes were accelerated as part of the Pension Act 2011.

The Backto60 campaign group, along with The Women Against State Pension Inequality, have claimed the changes were implemented unfairly and are calling for compensation to be paid to 3.8m women born in the 1950s.

They argue the changes were made so quickly that these women were left with no time to make alternative plans.

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