Future increase to the Normal Minimum Pension Age

Feb 7, 2022
In September we gave you an update about the proposed increase to NMPA and how it will affect members. This is the position in February 2022.

Normal minimum pension age will rise to 57

The normal minimum pension age (NMPA) is the earliest age at which most pension savers can access their pensions without incurring an unauthorised payments tax charge - unless they are retiring due to ill health.

In July 2021, HMRC published a consultation on draft legislation to increase the normal minimum pension age from 55 to 57 in April 2028. The consultation has now closed and legislation is now with parliament for approval.

Protected pension age and ‘new PPA’

NMPA has been 55 since 6 April 2010, unless a member has a protected pension age (PPA) which allows them to take their pension benefits between 50 and 55.

To reflect the increase in NMPA, protection known as ‘new PPA’ will be available. This will allow members to keep a NMPA of 55.

The new PPA will apply to members of schemes with rules giving the right to take pension benefits before age 57, including active members of the Railways Pension Scheme, if they were a member on 4 November 2021.

Will you be affected?

Only members who do not have a protected pension age and want to take their benefits before age 57, after 5 April 2028 will be affected.

Members who already have a PPA of 50 will not be affected by this new PPA or the increase in the NMPA.

The draft legislation is still progressing through the parliamentary process and therefore could change.