The Government has closed a loophole in its plans to raise the minimum pension age from 55 to 57, to avoid confusion and the risk of fraudsters exploiting savers.

The age when you can start tapping your private retirement savings is due to move to 57 from April 2028.

But under the initial plans, people affected by the change who transferred to a scheme with a ‘protected’ pension age’ by April 2023 could gain access to their money at the old lower age.

A barrage of industry criticism and calls for a rethink prompted the Treasury to announce that unless you are currently in the middle of doing a pension transfer, the option of doing this to still benefit from an age 55 threshold was removed as of last night. 

Pension planning: The age when you can start tapping your private retirement savings is due to move to 57 from April 2028

The Treasury said it had heard concerns that leaving the ‘window’ to doing this open until 2023 would have an adverse impact on savers and the pensions market.

John Glen, Economic Secretary to the Treasury, said: ‘Some pension savers could find themselves with poorer outcomes (or even be the victim of a pension scam) if they were rushed by rogue advisers to make a quick transfer in the short time period before the window closed.’

The change will apply to most savers, but not members of certain uniformed public service schemes or others who have a specially protected pension age.

However, industry critics warn there are still potential pitfalls for…

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