The government has confirmed that the normal minimum pension age (NMPA) in the UK will rise from 55 to 57 on April 6, 2028, affecting anyone born on or after April 6, 1973. The change, confirmed by HM Revenue and Customs (HMRC), means most people will have to wait an extra two years before they can access their personal private and workplace pensions, unless they hold a pension with a lower Protection Pension Age.
Who is affected by the NMPA increase
Those born before April 6, 1971, will be unaffected because they will already be 57 when the change takes effect. People born between April 6, 1971, and April 5, 1973, will enter a transitional period: they will reach age 55 before the increase, so HMRC intends to allow them to access their pension benefits at any time from their 55th birthday up to April 5, 2028. After that date, they may continue to take benefits from funds they have already started to access, but may not take additional benefits until they reach the new minimum age of 57.
Members of the armed forces, police, and firefighters public service pension schemes are exempt from the increase.
Transitional arrangements and rationale
Announcing the changes earlier this year, HMRC said that when the NMPA was last increased in 2010 from 50 to 55, transitional arrangements were needed to ensure affected members could continue receiving benefits without interruption. Similar provisions will be necessary for the 2028 increase. HMRC explained that a member who has reached 55 before April 6, 2028, may have met all conditions to access a benefit before that date, but after that date may not receive an authorised payment until age 57. The transitional regulations aim to allow members who have already become entitled to their benefits to continue doing so seamlessly. These provisions apply only to members who have reached 55 on or before April 5, 2028.
State Pension age changes and future review
The NMPA change coincides with the State Pension age rising from 66 to 67, which began on April 6 this year and is due to complete in 2028. Both increases reflect longer life expectancies, making pension planning for retirement vital. A further State Pension age rise to 68 is planned between 2044 and 2046, but this could be brought forward to between 2037 and 2039 following a government review launched last year. That would affect those born between April 6, 1970, and April 5, 1978, though by law the government must give at least 10 years' notice before any change takes effect.
Previous governments have said the NMPA should be 10 years below the State Pension age, so in theory it would rise to 58 when the State Pension age reaches 68, meaning another potential rise could be on the cards. Andrew Oxlade, Director at Fidelity International, said: "If the rise in the State Pension age to 68 was brought forward by seven years, the question of the NMPA would need to be answered, especially in light of the aim to give pre-retirees 10 years' notice. The government could announce early next year that the State Pension age will rise in 2037, 10 years ahead. But if the age of access to pension savings continued to be hooked 10 years below the State Pension age - rising from 57 to 58 - this would give retirees very little notice, derailing their retirement plans. This will be a consideration for the review."
