In April 2028, the normal minimum pension age (NMPA) will rise from 55 to 57.
While this seems a little way off right now, time does have a habit of whizzing by faster than we might like. And if you’re thinking about retiring in the next few years, it might be something to factor into your retirement plan.
What the policy change means
The incoming change will mean that the earliest most people can start taking money from their personal or workplace pensions will increase by two years.
If you’re in your early 50s and hoped to retire at 55, this may affect your plans.
In simple terms, if you were born on or after 6 April 1973, you’ll have to wait until your 57th birthday to access your pension savings. If you access them sooner, you could incur a charge.
If you were born on or before 6 April 1971, you can rest easy as the change won’t affect you.
A special window if you’re betwixt and between
For those born between 6 April 1971 and 5 April 1973, a special window allows you to take benefits at 55.
To take advantage of this, you must do so before 5 April 2028. Otherwise, you’ll have to wait until age 57.
This is just one example of why it may be wise to plan ahead.
Read on to find out more about how the change may affect your retirement plan and why it needn’t knock you off course if you’re planning to retire at 55.
5 practical steps to help you prepare for the impending pension age change
1. Check your pension details for any protections
If your pension has a “protected pension age”, you may retain the right to access your pension savings at age 55.
Some older occupational schemes or personal pensions might have a preserved lower pension age, meaning you’re protected from the incoming age increase.
It’s also worth noting that pension schemes for firefighters, police, and the armed forces are exempt from the age increase.
2. Review and adapt your position early
If you were born after April 1971 and expect the change might affect you, you may wish to delay retirement or consider a phased, or gradual retirement.
Alternatively, you may find that you’re able to increase other savings that you could then use at 55 or 56 to fill the gap before accessing your pension savings, such as through an ISA.
Indeed, regardless of whether this change affects you, saving through a combination of pensions, ISAs, and other investments could allow you more options when planning your retirement income.
3. Maximise contributions
Another possibility is to increase the amount you’re paying into your pension while you can.
This could help you to build a larger pot, and allow it more time to benefit from compound growth until you access your savings at age 57 (or beyond).
It’s also worth remembering that leaving your pension savings invested for as long as possible could allow you potential to benefit from more tax-free growth.
If you’re a member of your workplace pension, it may be a good idea to find out whether you could take partial pension withdrawals in the event that you suffer ill health, or are made redundant.
Such rules can be strict, so it may be helpful to get a clear understanding of what your workplace pension allows well ahead of time.
4. Don’t act out of a sense of pressure
If you’ll be celebrating your 55th birthday in 2027, although you could start drawing from your pension before April 2028, don’t rush to do so just because you can.
With life expectancy increasing, it’s important to think carefully about how to devise a sustainable income that will see you through your whole retirement.
Indeed, longevity is at the root of the government’s rationale for this age change. The argument being that as people live longer, pension access age should shift in line to ensure our savings last a lifetime.
Preparing your retirement plan ahead of this change could help you to adjust your expectations or adapt your savings goals, allowing you to maintain control of your choices.
Ultimately, just because the NMPA is set to change, it needn’t automatically mean you can’t still retire at age 55. It’s all in the planning – and working with a financial planner could help you achieve the retirement you hope for.
5. Speak to a financial planner
Even without changes like this coming along to potentially scupper your long-term plans, pension savings and retirement planning can be complicated.
We’re here to provide peace of mind for your financial future. With a bespoke financial plan in place, you can be confident that your retirement is in safe hands, whatever tomorrow may hold.
Our experienced financial planners will help you understand what you have in your various pots, and advise you on how to get the most out of your pension, including making the most of available tax relief.
We can also help you better understand how much you’ll need for the retirement you want. We’ll use financial forecasting tools to help plan for every eventuality, so you can be sure you’ll have enough money to last your lifetime.
Get in touch
If you’re concerned about how this upcoming change could affect your plans or simply wish to make sure you’re on track for the retirement you dream of, please get in touch.
Email contactme@kbafinancial.com or call us on 01942 889 883.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.
Past performance is not a guide to future performance and should not be relied upon.
An ISA is a medium to long term investment, which aims to increase the value of the money you invest for growth or income or both. The value of your investments and any income from them can fall as well as rise. You may not get back the amount you invested.
HM Revenue and Customs’ practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.
Approved by The Openwork Partnership on 06/06/2025.