Minimum Retirement Age increases from 55 to 57
The NMPA is set by the Government and is the minimum age at which most pension scheme members can access their pensions (voluntary retirement) without incurring an unauthorised payments tax charge (unless they are retiring due to ill-health). The NMPA is currently age 55 and included in the LGSP Regulations. Having an NMPA helps to provide benefits in later life and accumulate sufficient pension savings. Since its introduction, the NMPA has increased broadly in line with the state pension age, generally being around 10 years below the state pension age. The NMPA rose from 50 to 55 in 2010.
HM Treasury have launched a consultation to increase of the minimum pension age from 55 to 57.
If the proposed changes come into effect, for those who are 55 on or after 1 April 2028, the earliest date you can voluntarily access your retirement benefits will increase to age 57.
The consultation seeks views on the implementation of the rise and protections for pension scheme members and is open until 21 April 2021. A copy of the consultation can be found at GOV.UK: Increasing the normal minimum pension age: consultation response and includes details on how to respond.
We will continue to keep you updated as we receive further information.