The rise in normal minimum pension age (NMPA) from 55 to 57 on 6 April 2028 could catch out thousands of 'unsuspecting' savers in their 50s, Evelyn Partners partner, Gary Smith, has warned.

The NMPA is the earliest age at which a member of a registered UK pension scheme can normally take pension benefits without incurring tax penalties. The NMPA was most recently increased during April 2010 from age 50 to 55.

The government said the change to NMPA “supports the government’s fuller working lives agenda and has indirect benefits to the economy through increased labour market participation, while also helping to ensure pension savings provide for later life”.

Commenting on the upcoming change, Smith said: “This seemingly straightforward rule change could catch out thousands of unsuspecting pension savers. Many face a cliff-edge, where their ability to access their pension is suddenly put back for up to two years.”

He explained that pension holders who turned 55 before the start of this financial year will be unaffected, and for most younger savers there is no decision to be made now.

However, there is “a two-year cohort in the middle,” who have an option to retain access to funds that otherwise will be delayed.

Smith explained that people who turn or turned 55 between 6 April 2026 and 5 April 2028, who want to retain flexible access to their pensions, might want to crystallise pension arrangements prior to 6 April 2028.

Some savers with a definite retirement date in mind might need other funding arrangements in place to act as a bridging income until they can access their pensions, or consider delaying retirement.

Some pension arrangements have a protected retirement age, which will be retained and continue to apply beyond the NMPA change. But Smith warned that savers must be careful not to inadvertently lose this when they transfer schemes.

He added: “While the NMPA might entail a bit of a ‘glitch’ for some in pension access, we also need to consider that money-purchase pensions will become subject to inheritance tax from April next year. The combination of these two factors could prompt more savers to think about accessing their pensions earlier than they might have normally envisaged.”

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