Released 20 July 2021
HM Treasury (HMT) has published a summary of responses to the consultation on increasing the minimum pension age from age 55 to 57 in 2028 and the proposed protection regime. Draft legislation for inclusion in the next Finance Act has also been published.
Finance Bill 2022 will legislate for the increase in the normal minimum pension age from 55 to 57 on 6 April 2028. This is the age at which most members of registered pension schemes can draw benefits without incurring unauthorised payment charges (unless they are taking their pension due to ill-health). Increasing the normal minimum pension age reflects increases in longevity and changing expectations of how long we will remain in work and in retirement. Raising the normal minimum pension age to age 57 could encourage individuals to save longer for their retirement, and so help ensure that individuals will have financial security in later life.
The increase to the NMPA was announced in 2014 following a consultation and reconfirmed earlier this year. Members of uniformed public service pension schemes and those with unqualified rights to take their pension below age 57 will be protected from these changes. After considering consultation responses, the Government has agreed that individuals will be able to keep their protected pension age if they transfer their pension.
Further details can be found at https://www.gov.uk/government/consultations/increasing-the-normal-minimum-pension-age-consultation-on-implementation.
View the HMRC policy paper and draft legislation Increasing the normal minimum pension age for Pensions Tax.