To think you shouldn't be able to access your pension at 55 (soon to be 57)

[movemamamove]

We keep hearing about the ever-increasing number of adults who are not in work or actively looking and the impact this has on the economy, and pension age has been increased to 66 and will be 67, so why is it that people can draw down on their pension at 55 rising to 57 in 2028? Surely this encourages people to retire earlier and step out of the workplace far earlier than they should be & it's probably only the wealthiest anyway which doesn't seem fair.

DH & I have been focusing on 55 as the first stage in our retirement. We planned to take a step back from our careers, draw down on one of our pensions to travl & hopefully live abroad for a few years. If/when we do re-enter the workplace here, it would be part time & likely far less senior roles so earning less & spending less. If I couldn't access this money until 60 or even pensionable age, we'd just carry on working until then as the only way we can fund our intended travels is drawing down from a pension fund - we invested heavily into very good workplace pensions so have minimal savings but excellent pensions.

Anyone else have a view on this or maybe an explanation why this early draw-down option hasn't been increased bar this latest 2 year extension? Or perhaps explain the reason why this is a good idea?
AIBU to think it should be extended?
YABU - leave well alone. If you can afford to take a step back & access your own money, why not?
YANBU -agree and it should be increased to 60+ to stop people retiring so early.

I think people must be allowed to retire when they like as long as they are not expecting the taxpayer to pay (benefit)

Stupid post !!!!

Glad to hear this 😊

I believe private pension draw down options sit 10 years earlier than state pension age.

I don’t plan on working until state pension age which could be likely be higher than 67 when I’m due to retire. My plan is to drop down to part time at 50 meaning I am investing outside of a pension for this. My private pension will then be then kick in at 57 to reduce my hours further

I was being sarcastic.

Ex-Secondary teacher here; I retired just before my 57th birthday some 11 years ago, and until I received my state pension (last year) I didn't receive any public money (just my - reduced - Teachers' pension.) We have lived on a reduced income....

Yet this was the best decision I ever made, both for me and my family, and also for the unfortunate pupils I might have had to teach if I'd carried on working as I got out whilst I was still enjoying teaching (mostly) and doing a pretty good job. But I knew that was about to change, both due to changes in teaching (think the awful Gove....) and I knew I was getting fed up.

And, as a bonus, I made way for a younger person to get a job.

No it definitely wouldn’t be fair to change the rules like that-it’s already grossly unfair that the age to access state pension has gone up (and will continue and likely disappear for younger generations). The sole reason I pay into and pay extra into a private pension is to retire early and spend hopefully a good amount of years enjoying my life and then looking after potentially looking after grandkids before ill health or death happens! I don’t want to work till late 60s then possibly die or be in ill health only a few years later

Depends if you are able to live on what you have.
I accessed mine at 55 and paid off all my debt.

I’m 46. I’ve worked since I was 16 and aim
to retire as soon as is possible. I feel like I’ve done my bit already and have no concern for how it affects anyone else!

I will absolutely taking my NHS pension at 60 when I can without losing any of it. I worked as a Nurse for 30+ years and it ruined my mental and physical health. I would rather try and live very frugally on it than carry on working any longer.

YABU.

Actually, people say that they are “retired” only when accessing a pot to this name. What do you think wealthy people have exactly?

So no, the wealthiest are NOT the ones that will retire at 55. The ones that do that have succeeded to secure something, why on earth would you want to take it away? To force them into work for an extra 5years?

it doesn’t make sense AND you forget people get sick. Plus who will hire them? So instead of being on benefits…maybe we let them have access to the money they are entittled to and that they contributed in?? I mean, call me crazy…

Good evening 🌺

Oh, just saw that :)

OP, how old are you?

Have you tried to continue in a very physical job beyond 55? Are you aware of how strength reduces for many from that age onwards?

Do you understand how dangerous it can be for a prison officer or police officer to continue working if they are still on the coal face. Equally construction, farming etc?

I was diagnosed with cancer in my 50s. Treatment is brutal, and employers find ways to get rid, even if legally they aren't allowed to. Being able to access a pension fund is essential for many.

I'm pleased you are still young, fit and healthy. I suggest you don't form an opinion until you get there.

I can get the vast majority of my NHS pension and lump sum at 55 in two years and I'm counting the days already. 37 years and I'm done. DH retiring too. Same age.

No Govt is going to change it or Civil Servant suggest this as they are all waiting to get their gold plated pensions and live a merry old live in retirement while the rest of us slog our guts out to pay for their Ponzi scheme pensions.

Only a fraction if our population CAN afford to take early retirement, so we'll done and good luck to them. Always have been of the opinion next persons finances are their own business as long as they've paid their way and not dodged

Just because you can access your pension at 55 doesn’t mean you have to. If you want to / need to keep on working you can.
if you have health issues why shouldn’t you use your pension while you still can?

My husband tells people they can retire early for a living, he loves it. He is a lifestyle financial planner. His youngest clients retired at 40 (childfree by choice)
Its all about doing the things you want to do while you still have a chance to do it, so many people wait until "retirement" age and sadly in so many cases life/ ill health prevents them from enjoying their hard earned money to do the things they love.

sure you can retire, but at 55 it’ll be worth peanuts. Especially if you’re going to need care in your dotage

Mind your own.
Our money our choice.

💯
Mind your own OP.
Dont dictate to others.

This
You are complaining about people doing exactly what you yourselves are planning on doing!
If someone can afford to retire at 55 and drawdown on their pension to bridge the gap till they get their state pension, good for them.
Plus people don't always have a choice. I was made redundant from aviation as a result of Covid at age 59. Ageism is rife. Good luck to you if you think you can go overseas and then return to the UK and find another job age 65, but in my experience you're being naive.

Seriously??!!

Depends how much you have in your pension fund and what other savings and assets you have.