HMRC has issued fresh guidance on a forthcoming increase in the normal minimum pension age, affecting UK households born after 1971. The change, set for April 6, 2028, will raise the minimum age for accessing retirement funds from 55 to 57.
Key Changes
HMRC confirmed in its latest pension newsletter that the minimum age for accessing retirement funds will rise to 57 on that date. Transitional arrangements will allow individuals who have already accessed or become entitled to pension benefits before the change to continue receiving payments without interruption.
Specifically, those aged 55 or 56 before April 2028 who have already designated funds, purchased an annuity, or started a scheme pension can continue receiving those benefits as authorised payments after the change. However, any further benefits crystallised after April 5, 2028, will generally require the individual to have reached age 57, unless a protected pension age or other exception applies.
Expert Commentary
Andrew Tully, technical director at Nucleus, described the clarification as necessary but limited. “This is much needed clarification by HMRC, but it feels like the minimum possible flexibility which could be offered,” he said. Tully added that the change would force some individuals to pause their pension processes and wait until age 57, creating planning issues.
Adam Cole from Quilter highlighted that those born between April 6, 1971, and April 5, 1973, need to pay close attention. “Under the old rules, they would have expected to access their pension at 55, but if they have not taken benefits before April 2028, they may need to wait up to two additional years,” he explained.
HMRC’s guidance aims to provide clarity for those planning their retirement, but experts warn that the changes could disrupt financial strategies for many nearing retirement age.
