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The UK Minimum Pension Age Is Changing
From 6 April 2028, the normal minimum pension age in the UK will increase from 55 to 57.
This is the earliest age at which most people can access benefits from a UK registered pension scheme without the payment potentially being treated as unauthorised for UK tax purposes.
It is separate from the UK State Pension age, which is governed by different rules.
Why Is the Minimum Pension Age Changing?
The UK Government announced the change to coincide with the rise in the State Pension age to 67 and to support people in saving for later life.
The change was introduced through the Finance Act 2022 and will take effect from 6 April 2028.
How Could the Change Affect You?
| Your Date of Birth | How the Change May Affect You |
|---|---|
| Before 6 April 1971 | You will already be 57 by 6 April 2028, so the change should not affect the age at which you can access your pension. |
| 6 April 1971 to 5 April 1973 | You may be able to access your pension from age 55 before 6 April 2028. After that date, you may need to wait until age 57 before accessing any benefits you have not already started taking. Transitional rules are still being finalised. |
| On or after 6 April 1973 | You will generally need to wait until age 57 before accessing your pension benefits. |
The effect will largely depend on your date of birth, the rules of your pension scheme and whether you begin accessing your pension before 6 April 2028.
These are general guidelines. Protected pension ages, ill-health provisions and the rules of your particular pension scheme may result in a different access age.
What If You Turn 55 Before April 2028?
People born between 6 April 1971 and 5 April 1973 will be aged 55 or 56 when the new minimum age takes effect.
You may be able to begin accessing your pension before 6 April 2028. After that date, you may need to wait until you turn 57 before accessing benefits you have not already become entitled to.
HM Revenue & Customs is currently consulting on transitional provisions for people who have already become entitled to certain pension benefits before the change takes effect. The intention is to allow specified pension payments to continue after 5 April 2028 without interruption.
As these provisions are still being finalised, it is important to check the latest guidance and the rules of your particular pension scheme before making any decisions.
Are There Any Exceptions?
The change will not apply in every situation.
Some pension schemes provide members with a protected pension age, allowing benefits to be accessed before age 57. This protection applies on a scheme-by-scheme basis, so you could have protection under one pension but not another.
There may also be an exception if you need to retire early because of ill health. Members of the UK firefighters, police and armed forces public service pension schemes are also exempt from the increase.
Transferring a pension can affect whether a protected pension age is retained, so it is important to seek advice before making any changes.
Your pension scheme may also set an access age that is higher than the UK normal minimum pension age.
What Should You Do Now?
If you were born between 6 April 1971 and 5 April 1973, it may be worth reviewing your pension and retirement plans before April 2028.
Things to consider include:
- Whether your pension has a protected pension age
- When your particular scheme allows you to access your benefits
- Whether you intend to begin accessing your pension before April 2028
- How the change fits with your wider retirement and investment plans
- Whether transferring your pension could affect any existing protection
You can find further information in the UK Government guidance on the increase to the normal minimum pension age.
If you would like to discuss how the change may affect your pension or retirement plans, contact us to arrange a catch-up with our Principal Adviser, Mark Jones.
Mark Jones
Director
Principal Adviser
Simply give Mark Jones a call on 0800 404 202 or send him a message.
This content has been provided for information purposes only and is not intended as a substitute for specific professional advice on investments, financial planning or any other matter. Read our disclaimer notice and privacy statement.
