Pension change from 55 to 57 in 2028?

[SW17]

I am 47 years old and have been with RM for almost 30 years, I was looking at taking my section C pension early at 55 years old but am I right in thinking this will not be possible now due to government changes?
If this is the case and had to take it at 57 instead would that mean only a 15% deduction instead of 25% deduction?
This is meant to start in 2028

[aiden01]

I am 47 years old and have been with RM for almost 30 years, I was looking at taking my section C pension early at 55 years old but am I right in thinking this will not be possible now due to government changes?
If this is the case and had to take it at 57 instead would that mean only a 15% deduction instead of 25% deduction?
This is meant to start in 2028

Yeah will be 57 unfortunately im sure robert t will be best to answer.

[Wullie10]

Good question. I never thought of that.

[RobertT]

The change from 55 to 57 was first announced in 2014, but it didn't actually become law until 2022.

From 6th April 2028, no one under the age of 57 will be able to access any pension, unless it's on health grounds or their scheme has a protected pension age of lower than 57.
The RM scheme/s do not have a protected age, as far as I'm aware.

Also, the minimum age you can take a pension has been aligned to 10 years before state pension age. So when that increases to 68, the earliest you can touch any other pension will be 58.

It's worth noting that some in the pension industry/government wanted that to be 5 years before SPA, and there is the potential for changes in the future.

There's legislation in place to increase SPA from 67 to 68 between 2044-2046. But it's expected that will be brought forward to at least 2037-2039, but it may well be earlier.

The 5% per year reduction to RMSPS/RMPP benefits will still apply if taken before NRA. So taking all your pension at 57 would mean a 15% reduction on NRA60 and 40% on NRA65.

[NWpostie]

Ideally it's better to take your pension at it's due date rather than early as you will end up living with a reduced pension for life.

Raising the state pension age is something I object to tho.

[SW17]

this is what I was thinking was going to be the case, the finishing line is getting further and further away.
Thanks RobertT.

[chuckychucks]

If you get access to your pension early say at 54 or even 55 because of IHR is it still reduced by 5 % or is it worked out based on full service.

[RobertT]

If you get access to your pension early say at 54 or even 55 because of IHR is it still reduced by 5 % or is it worked out based on full service.

If your health condition is deemed to be severe enough, it is possible to take your full unreduced pension before the legal minimum age.

[Terrance]

Hi I had my MRI results and I have spinal stenosis,a compressed nerve and spondyolethesis which is the bones in my vertebrae slip out and overlap on the bone underneath, my dom said he will call me tomorrow so hopefully I will get IHR now

[LUKEYBOYS2015]

Everything go okay yeah

[ruudy]

If you get access to your pension early say at 54 or even 55 because of IHR is it still reduced by 5 % or is it worked out based on full service.

If your health condition is deemed to be severe enough, it is possible to take your full unreduced pension before the legal minimum age.

Hi Robert. Are there any examples of what sorts of health conditions are considered severe enough? Is there a list of some sort?

I'm wondering how they evaluate things like mental health.

Also, could a doctors report be taken into consideration? There was GP/medical information was considered during the IHR assessment in my case.

[RobertT]

If you get access to your pension early say at 54 or even 55 because of IHR is it still reduced by 5 % or is it worked out based on full service.

If your health condition is deemed to be severe enough, it is possible to take your full unreduced pension before the legal minimum age.

Hi Robert. Are there any examples of what sorts of health conditions are considered severe enough? Is there a list of some sort?

I'm wondering how they evaluate things like mental health.

Also, could a doctors report be taken into consideration? There was GP/medical information was considered during the IHR assessment in my case.

I'd have thought it would be very specific to the individual.

Medical proof will be needed.

[ruudy]

If you get access to your pension early say at 54 or even 55 because of IHR is it still reduced by 5 % or is it worked out based on full service.

If your health condition is deemed to be severe enough, it is possible to take your full unreduced pension before the legal minimum age.

Hi Robert. Are there any examples of what sorts of health conditions are considered severe enough? Is there a list of some sort?

I'm wondering how they evaluate things like mental health.

Also, could a doctors report be taken into consideration? There was GP/medical information was considered during the IHR assessment in my case.

I'd have thought it would be very specific to the individual.

Medical proof will be needed.

Thanks Robert. Makes sense.

The only thing that doesn't make sense to me is how the OH provider goes about undertaking their assessment of mental health conditions and makes a recommendation for the lesser lump sum IHR without actually reviewing medical evidence? Or is it typically up to the employee to appeal the decision?