The UK government has confirmed that it intends to allow retirees who turn 55 between now and April 2028 and start accessing their pensions to continue accessing them after the normal minimum pension age (NMPA) rises, even if they have not reached the new access age.
In a newsletter last week, HMRC released a preview of its transitional regulations for the change of the UK’s NMPA, which is currently 55 but will rise to 57 from April 2028.
Financial advisers and the pensions industry have been long awaiting these transitional regulations, and providers have reported an uptick in requests from advisers who have not been sure whether clients turning 55 would be able to keep accessing their pensions after April 2028.
The government said: “Where a member was aged 55 or 56 on 5 April 2028 and had already taken steps to access their pension benefits, such as designating funds for drawdown, applying those funds towards the purchase of an annuity, or becoming entitled to a scheme pension, those benefits can continue to be paid on or after 6 April 2028 as authorised payments.”
However, it confirmed that for any pensions which have not been accessed before 6 April 2028, the scheme member will need to wait until they reach age 57, unless a protected pension age or ill-health exception applies.
“The aim of the transitional regulations is to ensure that members who have already become entitled to their pension benefits can continue to do so seamlessly,” the newsletter said.
