Normal Minimum Pension Age Increases to Age 57

The government has confirmed this week, following its consultation paper, that the Normal Minimum Pension Age (NMPA) will increase from age 55 to age 57 from 6 April 2028.  This brings into line the normal position that the NMPA is usually 10 years earlier than state pension age (SPA) i.e. 55 NMPA, 65 SPA and from 2028 the new age 57 NMPA and 67 SPA.

The increase to age 57 will not affect armed forces, firefighter or police pension scheme members.

Protected Pension Age

The government also confirmed that protected pension ages at 55 will still be available doe those with ‘unqualified’ pensions rights i.e. pension schemes in place as at 11 February 2021.  Any new pension schemes set up after this date will move to age 57.  In addition, if you have a protected pension age at 55, if you then transfer to a new pension scheme you will lose you protected pension age and move to 57.

That said, when pension ages moved from age 50 to 55, there was requirement for members to take all their ‘unqualified’ benefits at the same time if they wanted to keep a protected pension age of 50.  For this increase, the requirement to take all your benefits at the same time for those with a protected age of 55 will be removed.  The problem being that the term ‘unqualified’ is a little ‘woolly’ with the government set to provide a clearer definition on ‘unqualified’ pension rights.  Cheekily, 11 February 2021 has already passed so it is too late to make changes to any pension schemes rules meaning that if you do not qualify, you cannot avoid age 57.

If you do not have , there may be a way around it if you have do not have an unqualified right to a NMPA of 55, you may wish to transfer your pension to another scheme if it has an unqualified right to NMPA at age 55.

Comment

In summary, if you were born after 05/04/1968, the normal minimum pension age will now be 57.  If you were born before 06/04/1968, you will still have the option to draw pension rights at age 55 or if you choose not to, you may still retain the unqualified right to do so e.g. if you then wanted to draw pension at say age 56.

In addition, state pension age for those born after 05/04/1978 has already been increased to age 68.  We assume the NMPA will at some also increase to age 58 for these people.