Pension update as normal minimum age to increase from 55 to 57 – are you impacted?

THE NORMAL minimum pension age (NMPA), at which most pension savers can access their pot, is set to increase from 55 to 57.

Thérèse Coffey addresses state pension underpayments

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This will mean that from 2028, under-57s cannot access their pensions without incurring a tax charge, unless they are forced into retirement by ill-health.

The measure will affect men and women equally as the NMPA is the same for both genders.

To plan ahead, the Treasury and HMRC issued a joint consultation on implementing the change in February earlier this year.

The measure is part of a wider Government agenda to prevent the proportion of people’s lives spent in retirement becoming unsustainably high.

Already, people spend over a third of their lives living in retirement on average, way up from under a quarter which was expected in 1948.

This figure has been raised due to increasing life expectancies among both men and women.

The NMPA was introduced in 2006 at 50 years and subsequently increased to 55 in 2010.

READ MORE: State pension: Rishi Sunak could make ‘ill-advised’ change

normal minimum pension age changes

the normal minimum pension age is set to change (Image: Getty)

pension despair

people need to be made aware of changes to their pension ages to give them time to plan (Image: Getty)

It was announced in 2014 that this would rise again to 57 by 2028, coinciding with the rise of the state pension age to 67.

The law change means registered pension schemes must not normally pay benefits to members before they reach the NMPA.

The NMPA stipulates the minimum age benefits can be taken at without financial penalty and does not prevent people choosing to delay this.

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There is, however, a way around this for those who would rather retire earlier.


The draft legislation will give people the chance to join a pension scheme with different rules by April 5, 2023. These different rules may give members the right to take their pension benefits before turning 57.


The expectation is that younger people will be unaffected by this as those at least ten years away from this age will have enough time to plan ahead financially.

there is a way around the age increases as set out in the draft policy

there is a way around the age increases as set out in the draft policy (Image: Getty)

Those closer to the age of 57 will have to adjust more hastily which may be unsettling for some.


It is vital that people are aware of how any pension changes affect them so that they can organise their finances accordingly.


The pension’s ombudsman recently found that pension changes implemented by the Department for Work and Pensions (DWP) have suffered from maladministration.

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state pensions information (Image: Express)

This meant that many women have lost out financially to the tune of thousands of pounds and has caused them to be unable to effectively plan ahead.


Indeed many were caught out entirely when learning their pension ages had shifted years after the changes had been made.


The measure will be kept under review so that any impacts on certain groups surface quickly.

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