HMRC has shared an update on the normal minimum pension age, which could affect anyone born after 1974. The change, set to take effect on April 6, 2028, will increase the earliest age at which individuals can access their private or workplace pension from 55 to 57. This adjustment coincides with the state pension age rising to 67 in a phased rollout beginning this month.
What Is the Normal Minimum Pension Age?
The normal minimum pension age applies to registered pension schemes for UK tax purposes, including defined contribution schemes and defined benefit arrangements. It does not apply to the State Pension or unregistered pension arrangements, which are subject to separate tax rules. The last increase occurred in 2010, when the age was raised from 50 to 55, with transitional protections in place at that time.
Transitional Regulations for Affected Groups
Before the increase, HMRC is developing transitional regulations to support those negatively impacted. In the latest Pension Schemes Newsletter, the department provided early details, noting that the information is provisional and subject to change pending technical consultation.
The primary concern is for individuals born between 1971 and 1973, who will be between 55 and 57 when the new rule takes effect. Without protection, this group could face an abrupt interruption in accessing their funds. For instance, someone turning 55 on April 5, 2027, might begin claiming their private pension, but would be only 56 when the new rule applies, halting payments until they turn 57 a year later.
What HMRC Says
HMRC stated: "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 regulations will apply to those who have turned 55 on or before April 5, 2028. People born from 1974 onwards, who will not be 55 by the deadline, will likely face a normal minimum pension age of 57 without transitional protections.
However, HMRC assured that individuals with an "unqualified right" to take pension benefits before the minimum age—known as a protected pension age—will retain that right. The department added: "Although legislation sets the minimum age at which benefits can be taken, this must always be considered alongside the rules of each pension scheme, which determine what benefits are available and from what age. In some cases, scheme rules may specify a higher minimum age than the normal minimum pension age."
