Were you born after 5 April 1971?

Proposed increases to the normal minimum pension age may affect those born after 5 April 1971.

A new consultation paper has set out more details of an increase in the normal minimum retirement age.

In February the Treasury and HMRC published a consultation paper on implementing an increase in the normal minimum pension age (NMPA) from 55 to 57. The NMPA sets the earliest age at which retirement benefits (lump sum and/or income) can normally be drawn from a pension. The rise to 57 was originally announced back in 2014, but all then went very quiet. Eventually, in September last year, the Treasury replied to a question from the chair of the Work and Pensions Select Committee by confirming the 2014 announcement remained in force: the minimum pension age would indeed rise to 57 in 2028.

Unfortunately, the Treasury minister’s response was light on detail – there was no mention of the precise timing in 2028, whether there would be any phasing in or if transitional protection would be available. Given the deep water in which the government has found itself with the increase in women’s State Pension ages (SPA), the lack of information was surprising.

Changing pension ages

The consultation paper addresses the gaps in last autumn’s brief answer with the following proposals:

If this change affects your retirement planning, make sure you take advice as soon as possible.