Overview
What is the normal minimum pension age?
The normal minimum pension age (NMPA) is the earliest age most people can start withdrawing money from their personal and workplace pensions.
It’s currently age 55, but this will increase to age 57 from 6 April 2028, unless members have a Protected Pension Age or are retiring because of ill health. The NMPA is set by the UK Government.
Why is the NMPA changing?
The government is raising the NMPA in line with the rise of the State Pension age to 67. These increases reflect average longer life expectancies.
How does the change affect members?
This NMPA increase will not impact members who do not want to take their pension before age 57. However, if members are looking to take their pension before age 57, their date of birth will determine how the NMPA increase affects them.
| Born before 6 April 1971 | Born between 6 April 1971 and 5 April 1973 | Born on or after 6 April 1973 |
|---|---|---|
| No impact as they will already be age 57 before 6 April 2028. | Members will be able to take their pension benefits at any time from their 55th birthday up to 6 April 2028. However, it is currently unclear whether they’ll have to stop taking pension payments after 6 April 2028 (such as regular pension drawdown payments) until they reach age 57. Further clarification will be provided by the Government in due course. | Members will have to wait until age 57 to take their pension, unless they have a pension with a Protected Pension Age. |
What is Fidelity doing about the changes to the NMPA?
Fidelity is reviewing our member records, so that we can clearly show what pension benefits a member can access at age 55 and what they can access at age 57.
Due to the NMPA increase, we need to identify how pension benefits are impacted and separate them out as required. We will also be reviewing member accounts to check if some or all of their pension is eligible for a Protected Pension Age of age 55. This complex review is likely to take some time for Fidelity and other pension providers. We also require information from other companies on pension accounts that have been transferred to Fidelity after 3rd November 2021 when this change was announced, as well as clarification on some regulatory points from HM Revenue & Customs (HMRC).
After we have completed this review, we will contact members if we need to place a hold on their account to make these changes. We will give at least 30 days notice of this hold. Once the hold is complete, we will confirm to members what money they can access and when.
What about after these changes?
Fidelity are updating our processes so that members’ benefits are clearly marked as either being subject to NMPA or if a Protected Pension Age applies, particularly when transfers are made into member accounts, but that is dependent on receiving information from other pension providers and regulatory confirmation from HMRC.
We have provided a webpage for members on the NMPA increase.
Please contact your Relationship Director or your usual Fidelity contact if you have any further questions.