The government is raising the normal minimum pension age in the UK from 55 to 57 in 2028 (Image: Getty)
HM Revenue and Customs (HMRC) has confirmed a pension age increase in the UK for anyone born on or after April 6, 1973.
The government is raising the normal minimum pension age in the UK from 55 to 57, with the change due to come into effect on April 6, 2028. The minimum pension age is the earliest age at which most people can access and start withdrawing money from their personal private and workplace pensions, so the upcoming age increase will delay when some people can access these by two extra years. The change means anyone born on or after April 6, 1973, will have to wait until they reach age 57 to access their private pension, unless they have a pension with a lower Protection Pension Age.
Those who are born before April 6, 1971, will be unaffected by the normal minimum pension age increase as they will already be 57 by the time the change takes effect on April 6, 2028.
But people born between April 6, 1971 and April 5, 1973, will reach age 55 before the age increase takes effect, meaning they fall into a transitional period.
HMRC has announced that it intends to allow people to access their pension benefits at any time from their 55th birthday up to April 5, 2028.
After April 6, 2028, they will only be able to continue to take benefits from the funds they’ve already started to access, but may not be able to take any additional benefits until reaching the new minimum pension age of 57.
Confirming the changes for the normal minimum pension age in April this year, HMRC said: “Changes to the normal minimum pension age can affect the continuation of certain pension benefit payments. When the normal minimum pension age was last increased in 2010 (from age 50 to 55), transitional arrangements were required to ensure affected members could continue to receive their benefits without interruption. Similar provisions will be necessary for the 2028 increase.
“For example, a member who has already reached age 55 before 6 April 2028 may have met all the conditions to access a benefit before that date. However, after 6 April 2028, that same member may not be able to receive an authorised payment until they reach age 57.
“The aim of the transitional regulations is to ensure that members who have already become entitled to their pension benefits can continue to do so seamlessly.
“These transitional provisions will only apply to members who have reached age 55 on or before 5 April 2028, and who would therefore have reached the existing normal minimum pension age at that time.”
Members of the armed forces, police and firefighters public service pension schemes will be exempt from the normal minimum pension age increase.
The age change coincides with the rise of the State Pension age from 66 to 67, which began on April 6 this year and is due to complete in 2028.
Both of these age increases are being introduced by the government to reflect longer life expectancies and mean pension planning for the future is vital to ensure you have the funds you’ll need for retirement.
Helen Morrissey, Head of Retirement Analysis at Hargreaves Lansdown, said: “Making sure your pension planning is as robust as possible will also help you navigate any changes to state pension age.
“State Pension age will hit age 67 in 2028, and there’s also an ongoing review that could see further changes. As more of us live longer, the government will look at different ways to manage the burgeoning bill, and they could choose to bring the shift to age 68 forward or even put in place a timetable to age 69 and beyond.
“The normal minimum pension age for private pensions typically tracks ten years below State Pension age. Currently, private pensions can normally be accessed from 55; this is rising to 57 in 2028.
“Having a good level of pension will fund your longer life and will be a vital source of income should you need to retire before State Pension age.”
