HMRC has confirmed that the normal minimum pension age (NMPA) in the UK will increase from 55 to 57, a change that will affect individuals born on or after April 6, 1973. The Labour Party government's tax arm announced the shake-up, which takes effect on April 6, 2028, meaning many savers will have to wait an additional two years before accessing their private pension savings.
Transitional arrangements for those born between 1971 and 1973
Individuals born between April 6, 1971, and April 5, 1973, will experience a transitional period. They will be allowed to access pensions from age 55 until April 5, 2028, after which the new NMPA of 57 applies. This transitional measure is designed to smooth the shift for those closest to retirement.
Members of public service schemes for the armed forces, police, and firefighters are exempt from this NMPA increase, according to HMRC. The change coincides with the State Pension age increasing to 67, with a potential future rise to 68 planned between 2044 and 2046, which could also prompt a further NMPA increase.
HMRC explains the impact on pension benefit payments
HMRC said: “Changes to the normal minimum pension age can affect the continuation of certain pension benefit payments. When the normal minimum pension age was last increased in 2010 (from age 50 to 55), transitional arrangements were required to ensure affected members could continue to receive their benefits without interruption. Similar provisions will be necessary for the 2028 increase.”
HMRC added: “For example, a member who has already reached age 55 before 6 April 2028 may have met all the conditions to access a benefit before that date. However, after 6 April 2028, that same member may not be able to receive an authorised payment until they reach age 57. The aim of the transitional regulations is to ensure that members who have already become entitled to their pension benefits can continue to do so seamlessly. These transitional provisions will only apply to members who have reached age 55 on or before 5 April 2028, and who would therefore have reached the existing normal minimum pension age at that time.”
Expert warns of potential further rise to 58
Andrew Oxlade, Director at Fidelity International, commented on the potential for further changes. He 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."
The NMPA rise is part of broader changes to UK pension policy, with the State Pension age already set to increase. The potential further rise in the State Pension age to 68 between 2044 and 2046 could lead to another NMPA adjustment, according to HMRC. For now, savers born on or after April 6, 1973, will need to plan for the new age of 57, while those in the transitional group have until April 5, 2028, to access their pensions at age 55.
