Rates on the rise…
Although the Bank of England’s base rate has been 0.1% for over a year, other interest rates have been on the move. Most notably, yields on long-term government bonds have more than doubled. That is good news if you are nearing retirement and thinking about a pension annuity, as rates have risen.
Minimum pension age
The government has confirmed that the normal minimum pension age, the earliest age at which private pension benefits can normally be drawn, will increase from the current 55 to 57 from 6 April 2028. The timing coincides with the end of the next phased increase in State Pension Age from 66 to 67.
Make sure your retirement plans are flexible
Nearly two in five people brought their retirement age forward in the past year, according to a recent survey of those retiring in 2021. It’s a salutary reminder of the importance of building flexibility into your retirement plans.
The value of your investment and the income from it can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investing in shares should be regarded as a long-term investment and should fit with your overall attitude to risk and financial circumstances.