Minimum Pension Age Changes

April 29, 2021

As Independent Financial Advisers, we are constantly reviewing the shifting issues that affect your financial planning needs. One of the most significant matters that has been on the horizon for some time is the change in the minimum pension age.

The government has announced that it is to undertake a review on raising the normal minimum pension age (NMPA) from 55 to 57 in 2028.

The NMPA is the minimum age at which most people can access their personal pensions without suffering an unauthorised payments tax charge.

In the consultation paper published on the 11th February, the government confirmed that the NMPA is to remain around 10 years under the state-pension age which is due to rise to 67 by 2028.

The government view, is that changing the minimum pension age to 57 matches people’s increased life expectancy and how long people plan to remain in work for.

The government also feels that raising the NMPA could encourage individuals to save longer for retirement, ensuring a stable income in retirement.

The government is also looking to put in place safeguards for the increase for all types of registered pension schemes. This means an individual member who currently has the right under their current pension scheme rules to take pension benefits below the age of 57 will be protected from the increase.

Members of the firefighters, police or armed forces public service pension schemes will not be affected by the increase.

The consultation period is due to end in April 2022.

If you are concerned that you may be affected by these changes, please contact your adviser at Westerby who will be happy to discuss any implications and potential solutions with you.

You may also be interested in

Westerby Group triumphs at Business Fives: more than just winning!

Westerby Group triumphs at Business Fives: more than just winning!

On Thursday, August 15th, Westerby Group proudly demonstrated their prowess at the Business Fives Summer Season event at the Goals venue in Leicester. Showcasing both competitive spirit and camaraderie, the team exhibited football talent and a strong commitment to...

Westerby Group’s Spirited Team Olympics: A Testament to Teamwork

Westerby Group’s Spirited Team Olympics: A Testament to Teamwork

On Wednesday, August 14th, 2024, the Westerby Group hosted a successful Team Olympics day at Victoria Park. This event was more than just an afternoon of games; it celebrated teamwork, laughter, and new memories. Approximately 30 eager competitors from across the...

A spectacular evening at the annual Westerby Company ball

A spectacular evening at the annual Westerby Company ball

The highly anticipated annual Westerby Company Ball took place on the 19th of January 2024, bringing together 120 attendees for an unforgettable night of celebration and recognition. The event showcased the remarkable achievements and dedication of the Westerby staff,...