In 2006 the Government introduced the Normal Minimum Pension Age (NMPA) which was set at the age of 50. This means that registered pension schemes cannot normally pay any benefits to members until a member had reached that age.

From 6 April 2010 tax legislation (Sections 165(1) and 279(1) FA 2004) increased the minimum age from 50 to 55. It also prohibited registered pension schemes from having a normal pension age that is below age 55, even if an individual could retire before.

However, there are exceptions to these rules, such as a protected pension age and retirement due to ill health and there are examples set out in the policy paper (see link below).

Coming changes

In 2028, the government will be increasing the state pension age from age 66 to age 67 and to coincide with this increase, they would also like to increase the NMPA.

The government launched a consultation on their proposal to increase to NMPA from age 55 to age 57. The consultation closed on 22 April 2021 with 142 responses and as a result the NMPA will increase to age 57 from 6th April 2028. This change will require registered pension scheme administrators to modify their systems accordingly.

Exclusions

Members of the fire service, police and armed forces public services schemes will not be affected by this increase.

Further advice

If you have any questions about this change, please email Steve Darling at pensions.policy@hmrc.gov.uk

Further details are set out in the Policy paper which can be found here

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