Pension annuities; minimum age for best pension annuity rates, 55 from 50, from 6 April 2010. The minimum age for pension scheme members to access their pension benefits will jump from 50 to 55. Does this affect you? From this date it will no longer be possible for you to receive an annuity income or a tax-free cash lump sum from a private pension arrangement before your 55th birthday, except on the grounds of extremely poor health. If you will be aged between 50 and 54 on 5th April next year, and wish to access your pension benefits in the very near future you must do so before that date, otherwise you will lose access to your pension monies for up to five years.
If you are going to be between 50 and 54 on 5 April 2010 what options do you have? You could buy an annuity, hopefully with the best pension annuity rates. You could transfer your pension fund to an income drawdown (now unsecured pension) plan if you need to withdraw an income from your pension fund, and this is an alternative to buying a pension annuity. You could do nothing if you are sure you won’t need access to your fund until age 55. You should consider taking specialist advice to discuss the options available and which would be the best for you.
