Today the Economic Secretary to the Treasury, John Glen MP, has laid a Written Ministerial Statement about the changes to the Normal Minimum Pension Age (NMPA).
The minimum age at which people can access their pension will increase from 55 to 57 from 6 April 2028, except for those with a protected pension age and some uniformed services. Under the Government’s previous policy proposal, people would have been able to transfer their pension pot to another scheme in order to acquire a protected pension age of 55 until April 2023. The changes announced this morning mean that since midnight last night, it will no longer be possible to acquire this right by transferring.
Yvonne Braun, Director of Long-Term Savings and Protection at the Association of British Insurers said:
“We welcome the changes to the implementation of the Normal Minimum Pension Age which tackle some of the industry’s principal concerns about an orderly implementation and help reduce the risks to savers. The changes stop scammers from exploiting uncertainty, and also prevent market distortions as there are now no incentives to transfer purely to access a pension at age 55.
“However, most savers have more than one pension pot and millions will now have a mix, with some pots they can access at age 55, and others where they need to wait to 57 making it harder to plan for retirement. It is vital that Government and the pension sector work together closely to ensure that customers are clear about their private pension position and when they can access their money.”
For more information contact the Press Office.