Consultation outcome

Increasing the normal minimum pension age: consultation response

From:
HM Treasury
Published
11 February 2021
Last updated
20 July 2021 — See all updates
This consultation has concluded

Download the full outcome

Increasing the normal minimum pension age: summary of responses

PDF, 241 KB, 20 pages

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Detail of outcome

A response to the consultation on how to implement the normal minimum pension age increase and the proposed protections framework.

The government will legislate in the Finance Bill to increase the normal minimum pension age from 55 to 57 on 6 April 2028. This is the age at which most members of registered pension schemes can draw benefits without incurring unauthorised payment charges (unless they are taking their pension due to ill-health). Increasing the normal minimum pension age reflects increases in longevity and changing expectations of how long we will remain in work and in retirement. Raising the normal minimum pension age to age 57 could encourage individuals to save longer for their retirement, and so help ensure that individuals will have financial security in later life. The increase to the NMPA was announced in 2014 following a consultation and reconfirmed earlier this year. Members of uniformed public service pension schemes and those with unqualified rights to take their pension below age 57 will be protected from these changes. After considering consultation responses, individuals will be able to keep their protected pension age if they transfer their pension.

Here is the policy pack for increasing the normal minimum pension age for Pensions Tax.

Original consultation

Summary

A consultation reconfirming that the normal minimum pension age will increase from age 55 to 57 in 2028 and seeking views on the proposed protection regime.

This consultation ran from
to

Consultation description

The normal minimum pension age is the minimum age at which most pension savers can access their pensions without incurring an unauthorised payments tax charge (unless they are taking their pension due to ill-health). It is currently age 55. In this consultation, the government reconfirms its intention to legislate to increase the normal minimum pension age to age 57 on 6 April 2028. Increasing the normal minimum pension age reflects increases in longevity and changing expectations of how long we will remain in work and in retirement. Raising the normal minimum pension age to age 57 could encourage individuals to save longer for their retirement, and so help ensure that individuals will have financial security in later life. The increase to age 57 will not apply to those who are members of the firefighters, police and armed forces public service pension schemes. The consultation also seeks views on the proposed protection regime for members of other pension schemes.

Documents

Increasing the normal minimum pension age:consultation on implementation

Ref: ISBN 978-1-911680-34-5

PDF, 239 KB, 15 pages

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Published 11 February 2021
Last updated 20 July 2021 + show all updates

  1. Added: A response to the consultation on how to implement the normal minimum pension age increase and the proposed protections framework.

  2. First published.