Prudential Warns Of State Of Ignorance Over Retirement Age Rise
on: January 18, 2010, 6:02 am
New research* from Prudential shows that nearly half (47 per
cent) of 45 to 49 year-olds and two-fifths (39 per cent) of 50 to 54
year-olds are unaware of the rise in the minimum retirement age from 50
to 55 which comes into effect on 6 April this year. The increase in the
minimum retirement age could be a particular blow to people aged 50 to
55 who are planning to retire this year, Prudential warns.
Prudential is urging people who will be affected by the increase in minimum
retirement age to speak to financial advisers and pension providers ahead of the 6
April deadline and stresses there is still time to act.
The new minimum retirement age - first announced by the Government in 2004** - will prevent many people aged
between 50 and 55 from claiming private or company pension benefits and especially taking the tax-free cash
element of their pension fund until they
For those who had planned to retire at 50, the higher minimum age will mean five
years without access to pension benefits or tax-free
Prudential's research has found that 6 per cent of the UK's 3.9 million adults
aged 50 to 54*** - equivalent to more than 230,000 people - said they planned to retire in 2010.
Karin Brown, Director of Annuities at Prudential, said: "People who want to take
their pension benefits and any tax-free cash allowance still have nearly three
months to decide what they want to do.
"Prudential strongly urges people approaching retirement to contact a financial
adviser or talk to their pension provider about the options available.
"The Government first announced the changes to the minimum retirement age nearly
six years ago so there has been plenty of time for the news to sink in. It is
worrying that so many are still unaware but there is time to act before rules
The information contained in Prudential UK's press releases is intended solely for
journalists and should not be used by consumers to make financial decisions. Full
consumer product information can be found at www.pru.co.uk.
Notes to editors:
* Online survey conducted by Research Plus between 3-10 December 2009 among 6,073 UK
adults aged 45+.
** HM Revenue & Customs Pension Schemes Newsletter 38.
*** ONS population statistics show 3.9 million UK adults aged between 50 and 55.
Prudential research shows 6 per cent of people aged between 50 and 55 said they
planned to retire in 2010. 6 per cent of 3.9 million is 234,000.
"Prudential" is a trading name of The Prudential Assurance Company Limited, which
is registered in England and Wales. This name is also used by other companies within
the Prudential Group, which between them provide a range of financial products
including life assurance, pensions, annuities, equity release, savings and
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