Normal minimum pension age change

What is the normal minimum pension age?

The normal minimum pension age (NMPA) is the earliest age you can usually access your pension money. This age is set by the government. It’s currently 55 but rising to 57 from 6 April 2028. However, members who joined the scheme before 3 November 2021 can still access their pension at 55.

It’s called the normal minimum pension age because there are exceptions. For example, if you need to access your pension earlier due to ill health, you may be allowed to do so. Also, it’s not the same as the State Pension age (currently 66 but rising to 67 in 2028).

Why is the NMPA increasing?

The government is making this change to reflect increased life expectancy. The State Pension age is also increasing for the same reasons. The change is also designed to encourage saving for longer. 

Taking your pension early – even from the increased age of 57 – may mean you have less money in later life. Learn more about when you can take your pension money.

Who will be affected by the change?

Discover if this affects you.

What is a protected pension age (PPA)?

A protected pension age is a special right that allows certain pension scheme members to access their savings before the normal minimum pension age.

You may have a PPA if:

  • You joined your pension scheme before 4 November 2021, and that scheme offered the option to take benefits at age 55.
  • You are part of an older pension arrangement with special rules allowing access before the standard minimum pension age.
  • You qualify for an earlier protected age due to specific conditions. For example, certain types of employment or arrangements in place before the pension reforms of 2006 (also called the ‘A-Day’ reforms).

How to check if you have a PPA

  1. Contact your pension provider or scheme administrator. They can confirm whether your plan includes PPA rights or not.
  2. Check your scheme documents. Look for terms such as ‘protected pension age’, ‘unqualified right’ or ‘early access provisions’.
  3. Review transfer details. If you’ve transferred pensions, your PPA might not have moved with your savings – unless it was a block transfer, also known as a buddy transfer.

Do transfers to People’s Pension affect age 55 protection?  

If you joined People’s Pension before 4 November 2021, any pension pot transferred to us can be accessed from age 55 after 6 April 2028.

If you joined on or after 4 November 2021, the age you can access the transferred pot will depend on the rules of the scheme it came from. For example:

Old scheme did not have age 55 protection:

  • You will be subject to the changed normal minimum pension age. 

Old scheme did have age 55 protection:

  • The money from the transfer has a protected pension age. You can access it from age 55.
  • The contributions you and your employer pay in aren’t protected. After 6 April 2028, you can only access them from age 57.

Transferring away from People’s Pension

Make sure the new pension provider will allow you to take money from age 55 after 6 April 2028. Don’t lose out if you’re thinking about moving your pension. Read more about transferring and combining pensions. 

What should I do next?

  • Check whether you joined the scheme on or before 4 November 2021 by looking at your joiner letter. Remember, you can access dated transactions and statements with our mobile app or online. 
  • Combine your pensions into one simple plan – read more about transferring pensions.

Get in touch with us today with any questions. We’re always happy to help!

Key dates for 2028 pension age change

 

4 November 2021 Now to 5 April 2028 6 April 2028 onwards

Cut-off date for a protected pension age. From this date, new pension scheme joiners cannot take pension money at age 55 after 6 April 2028.

However, people who were already members of a scheme that provided protections can do so.

 Normal minimum pension age is 55.

Normal minimum pension age increases to 57.

Unless they have protected rights, anyone who has not reached 55 by this date will need to wait until 57 to access their defined contribution pension savings.