Pension savers born in certain years could be blocked from accessing their retirement savings for an extra two years under looming rule changes.
Experts are warning some people may have only a short window left to avoid being caught out before the new pension age rules come into force in April 2028.
Savers born between 6 April 1971 and 5 April 1973 could be affected by the increase to the Normal Minimum Pension Age, which is rising from 55 to 57 on 6 April 2028, according to PensionBee.
The changes could affect both workplace and personal pension schemes.
Anyone born on or before 5 April 1971 will avoid the changes because they will already have turned 55 before the new rules come into force.
Meanwhile, anyone born after 5 April 1973 will automatically fall under the higher minimum access age of 57.
However, people born within the two-year window between 6 April 1971 and 5 April 1973 face what experts describe as a "cliff edge" situation.
Those turning 55 between 6 April 2026 and 5 April 2028 will have a limited opportunity to start accessing or crystallising their pension before the rules change.
Those turning 55 between 6 April 2026 and 5 April 2028 will have a limited opportunity
| GETTYIf they do not take action during that period, they may be unable to access their retirement savings until they reach 57, potentially delaying access to their pension funds by almost two years.
The requirement to crystallise pension savings before the April 2028 cut-off creates an urgent planning consideration for this specific demographic of savers.
Maike Currie, VP Personal Finance at PensionBee, described the situation as potentially alarming for affected individuals.
"For some savers this could come as a nasty shock. Many people simply assume they will be able to access their pension at 55, not realising the rules are changing," she said.
The situation has been described as potentially alarming for affected individuals
| GETTYMs Currie emphasised the precarious position facing this particular age group.
"There is a very specific cohort - those born between April 1971 and April 1973 - who face a potential cliff edge. Miss the deadline to access your pension before April 2028 and you could find yourself locked out of your savings for up to two more years," she warned.
Despite the urgency surrounding these deadlines, Currie cautioned against hasty decisions to withdraw pension funds prematurely.
"That does not mean people should rush to raid their pension. In many cases, leaving savings invested for longer may lead to a healthier retirement pot thanks to a few additional years of extra contributions and investment growth," she explained.
Those who do access their pension could also trigger the money purchase annual allowance
| GETTYHowever, she stressed that forward planning remains essential. "But it does mean people should start planning now.
For anyone hoping to retire early, bridge a gap between work and retirement, or phase down working hours in their mid-50s, understanding these dates could be crucial," Ms Currie added.
Those who do access their pension could also trigger the money purchase annual allowance, which restricts future tax-efficient contributions.