Active discussions

Meet the Other Phone. Flexible and made to last.

Meet the Other Phone.
Flexible and made to last.

Buy now

Please or to access all these features

Talk
Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

Original poster

My company have changed the retirement age 20 years after I started my pension

55 replies

QuebecBagnet · 26/10/2022 18:06

So private pension which I started over20 years ago. On the understanding I’d be able to claim full pension at 55yo. Had a letter now saying they’ve changed it to 57yo as the government have now declared 57yo to be the new minimum retirement age.

can they do this? I thought I’d be getting it in 9 years time. Seems shit that the government can interfere as what’s it got to do with them? Maybe I wouldn’t have paid into it if I’d known 🤷🏻‍♀️ (Well I would but that’s not the point).

OP posts:
Tryingtokeepgoing · 26/10/2022 18:10

Well they’re correct that, from 2028 I think, the earliest you can take your pension is 57. So if you’re 55 before 2028 then you’re still fine, but as you say you’re 9 years from 55 then that doesn’t apply to you. Rationale, I guess, is to limit access to tax free cash to within 10 years of state retirement age to stop you blowing the lot too soon ;)

piscesangel · 26/10/2022 18:13

They don't have a choice - government has changed the law on minimum pension age and they are required to comply

ApolloandDaphne · 26/10/2022 18:30

The government makes the pension rules. Your company will have no choice but to comply.

EndlessMagpies · 26/10/2022 18:44

It would be nice if the government stopped fucking around with womens' pensions, wouldn't it? Especially since they seem to do it all on the quiet, and then people find out in the same way that the OP just has.

AdoraBell · 26/10/2022 18:51

Yes, unfortunately the company has to go what the government says.

HollyBollyBooBoo · 26/10/2022 18:55

I thought this was announced in 2014? Not new news by any means.

DomesticShortHair · 26/10/2022 18:57

This is the first I’d heard of it, and I’m not due to reach 55 until after 2028. Luckily for me, I’ve checked in a bit of a panic, and my pension is still payable at age 55 so I don’t need to worry. But I’m sure this will be a big and unwelcome surprise to some, if not most.

Soontobe60 · 26/10/2022 18:59

Lots of private pensions state that you can only access it from a certain number of years before state retirement age. They’re all increasing that age in line with the increase in state pension age.

JenniferBarkley · 26/10/2022 19:10

What kind of pension is it?

You say "claim in full" which concerns me a little - if it's defined benefit, you will be able to claim early (57) but it will be substantially reduced to allow for the extra ten years, say, that it will be paid for. So if your projected pension is £20K at 65, you won't be entitled to £20K p.a. from the age of 57.

If it's defined contribution, you'll be able to claim your whole pot but obviously you'll have to make it last a lot longer.

You're maybe well aware of this, but just in case.

titchy · 26/10/2022 19:14

So private pension which I started over20 years ago. On the understanding I’d be able to claim full pension at 55yo.

I think you might have misunderstood when you originally took out the pension- 20 years ago it wasn't possibly to take a pension at age 55 - that was introduced in 2010...

glassfully · 26/10/2022 19:17

Seems shit that the government can interfere as what’s it got to do with them?

Well if you claim your pension at 55 and run out of money, it has a lot to do with them.

Nikhedonia · 26/10/2022 19:20

HollyBollyBooBoo · 26/10/2022 18:55

I thought this was announced in 2014? Not new news by any means.

Announced as intention a while ago but it has only came into law this year.

MolliciousIntent · 26/10/2022 19:22

EndlessMagpies · 26/10/2022 18:44

It would be nice if the government stopped fucking around with womens' pensions, wouldn't it? Especially since they seem to do it all on the quiet, and then people find out in the same way that the OP just has.

... what's being a woman got to do with it?

SuperCamp · 26/10/2022 19:55

It has to do with the Gvt because they support pensions as a way to give people an income beyond the working years. A significant chunk of your pension comprises the 20% tax refund the Gvt pays, and the ongoing yield of that credit, year on year.

They aren’t giving you tax back on general savings so that those of pre retirement age can enjoy a savings bonanza to spend on who knows what.

57, if you choose to take it then, is still under the age when many women currently in the workplace thought they would be collecting the state pension.

Original poster
QuebecBagnet · 26/10/2022 21:16

Soontobe60 · 26/10/2022 18:59

Lots of private pensions state that you can only access it from a certain number of years before state retirement age. They’re all increasing that age in line with the increase in state pension age.

I guess my issue is that it never said that. It only ever said 55yo. I’m annoyed they change the terms and conditions unilaterally 20 years in. Seems unfair

OP posts:
MarshaMelrose · 26/10/2022 21:19

Yeah, when I started work, I was due to retire at 60. Now it's 66. What can you do?

Original poster
QuebecBagnet · 26/10/2022 21:19

@JenniferBarkley it’s a final salary scheme.

It definitely said payable at 55yo so not sure
about the other poster who said that wasn’t possible 20 years ago. Was actually a bit more than 20 years ago I started it, probably 1999. Maybe 1998.

OP posts:
caramac04 · 26/10/2022 21:25

EndlessMagpies · 26/10/2022 18:44

It would be nice if the government stopped fucking around with womens' pensions, wouldn't it? Especially since they seem to do it all on the quiet, and then people find out in the same way that the OP just has.

Yes! I should have my state pension now as promised when I started working at 16 (not 18 as govt try to insist on now) decades ago. I have been robbed. Sorry for moan.

Chewbecca · 26/10/2022 21:29

I’d check this with experts.

My DB pension has a ‘protected age’ which is written into the scheme terms and is unaffected by this.

Chewbecca · 26/10/2022 21:31

Here is the gov.uk page on protected pension age.

JenniferBarkley · 26/10/2022 21:32

In that case are you aware of the reduction for early payment?

Your normal retirement will have been, say, 65. So, if your pension is £20k at retirement and you're expected to live to 85, they'll have to pay you 20 x 20 = £400k total.

If you take that pension ten years early, you don't get an extra 20k x years. You would get £400k / 30 years = £13.3k

These figures are very very rough, and won't be accurate at all but it's important you understand the reduction for early retirement will be significant.

There is the chance your normal retirement age is 55, in which case ignore all of this, but I've never come across one that early.

Original poster
QuebecBagnet · 26/10/2022 21:41

I’m not sure to be honest @JenniferBarkley all I know when I worked for the company is everyone retired at 55yo on the dot with a “full pension “. I was one of the last ones to get in before they changed the scheme. But was always under the impression as long as I waited till 55yo my monthly payment would be the max amount.

OP posts:
Original poster
QuebecBagnet · 26/10/2022 21:42

Thanks @Chewbecca it’s a letter from my pension scheme I’ve had today telling me of the changes.

OP posts:
JenniferBarkley · 26/10/2022 21:43

You need to get in touch with your scheme administrators asap to figure out what you're entitled to. Very hard to plan if you don't know the numbers!

rainbowandglitter · 26/10/2022 21:43

Your defined benefit pension will have an early retirement factor applied to the pension if you take it at 55. It will be a rather large factor for taking it so early. Plus as pp mentioned its changing to 57.

Swipe left for the next trending thread