Date set for when private pension age will rise by extra two years

The government has finally set a date for when the private pension age will increase by two years.

While plans are already in place for the state pension age to rise from 66 to 67 by 2028, then to 68 afterwards, there wasn't much in place for those with a private pension. Government legislation for state pension will see a gradual rise to 67 for those born on or after April 1960; and a gradual rise to 68 between 2044 and 2046 for those born on or after April 1977.

However, private pensions can only be accessed once you turn 55. The normal pension age (NMPA) which determines when you access a private pension is set by the government, according to Leicestershire Live.

Read more: The one-off DWP payments that will arrive in March

From April 6, 2028, the NMPA will be increased to 57 - on that date you will either need to be aged 57 or older before you can begin taking money from your private pension. However, some private pension plans lay out the age you can claim your pension without having to pay tax or fees - generally between 60 to 65.

Therefore, if you want to take money out of your plan, you may be subjected to early access fees. At 55 years of age, a person can usually withdraw the first 25 per cent of their pension pot without needing to pay any tax.

However, the remaining 75 per cent is taxable - the amount of tax you pay will depend on your unique circumstances.

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