Pension reforms have given people full access to their retirement funds from age 55, however the government has plans to increase the private pension age to 58 and it could go higher.
Figures from retirement firm Partnership suggest more than 600,000 of those aged over 40 are aiming to use a pension to pay off their mortgage.
If the government links the private pension age to 10 years below the state pension age, then the private pension age will rise in tandem with increases in the latter. Alan Higham, of PensionsChamp.com, said the under 40s could find themselves with a state retirement age of 70 and therefore a private pension age of 60.
The Daily Telegraph, p. 25
