Martin Lewis, the personal finance expert, has issued a warning to savers with private pensions, urging them not to rush into withdrawing money ahead of upcoming changes to the access age. During an appearance on ITV's This Morning, Lewis provided a 'rough guide' to the modifications, emphasizing: 'Please don't read this as a call to rush money out while you can.'
Key Changes to Private Pension Access Age
The current state pension age in the UK is 66 for both men and women, but this is set to increase to 67 between April 2026 and March 2028. This shift also affects the age at which individuals can access lump sums from their private pensions. Lewis explained: 'I was asked today on This Morning... with the age you can normally take money out of a private pension rising from 55 to 57 on 6 April 2028, what happens to people who take money out at 55 or 56 in the year before the age rises?'
According to Lewis, the general rule is that if you have already taken steps to access part of your pension by 6 April 2028—such as designating money into drawdown or buying an annuity—those payments can continue after the age rises, even if you are only 55 or 56. However, any uncrystallised pension money not dealt with by that date will typically need to wait until age 57 to be accessed.
Advice for Savers
Lewis stressed that his comments should not be interpreted as a recommendation to withdraw money hastily. He noted: 'Often, leaving money in a pension for longer, so it can keep growing may be the better move.' He also highlighted the importance of seeking professional advice: 'Most important though, there are many other different elements to this and special rules for certain products so before taking pension money for the first time, always get free guidance from MoneyHelper Pension Wise service.'
Lewis also shared a personal revelation: 'It dawned on me I'm in this category, as I'll be 55 in May 2027. I can't quite get it through my head that I'll be old enough to take pension money out next year. When the hell did that happen!!!'
Expert Insights on Early Pension Access
Recently on BBC Morning Live, personal finance specialist Laura Pomfret discussed the trend of savers accessing their pensions early. She noted that research from the Pensions Commission showed that almost a third of people are accessing their pension pots at the earliest opportunity. Common reasons include paying off debts, mortgages, or helping family members.
Pomfret warned: 'Taking money early can have a knock-on effect... It's got less money in it to grow and it may leave you with not enough when you reach retirement because the current state pension age is 66.' She added that the state pension age will increase to 67 over the next two years, and the earliest private pension access age will rise from 55 to 57 in April 2028. This could cause concern for those who access their pensions early, potentially leaving them short later in life.
