Currently, most pension scheme members can access their pension savings from age 55, their normal minimum pension age (NMPA). However, in the Finance Bill 2021/22, the Government has confirmed its intention to increase the NMPA to 57 from 6 April 2028.
Whilst we have known for some time that this change was in the pipeline the Finance Bill, released in November 2021, included two notable changes in the form of retrospective cut off dates, that have effectively closed the door on schemes and/or individuals being able to take action to protect their current NMPA:
- Only schemes that gave members an ‘unqualified right’ to take benefits at 55 in their rules as at 11 February 2021 will be able to protect that age for existing members, a protected pension age.
- New members post 11 February 2021 who had joined such a scheme by 3 November 2021, i.e. had already joined before this rule change was announced, can also have a protected pension age of 55.
The original draft rules gave individuals the opportunity to transfer to a scheme which had a protected pension age of 55, provided this was done before 5 April 2023. This window was closed following industry concerns that it could have opened the door to scammers.