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 (PPA) 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. |
As these members will reach age 55 before 6 April 2028, they’ll still be able to take their pension benefits at any time from their 55th birthday, up to 5 April 2028. After 6 April 2028, they’ll only be able to continue to take benefits from the funds they’ve already started to access. They may not be able to take any additional benefits until they reach the new Minimum Pension Age of 57. As soon as the government issues firm guidelines on how these changes will work, we’ll update the information on this page. |
Members will have to wait until age 57 to take their pension, unless they have a pension with a Protected Pension Age. |
What is a Protected Pension Age?
A Protected Pension Age lets members withdraw money from their pension earlier than the normal minimum pension age.
Members will have a Protected Pension Age of 55 if:
- The pension scheme’s rules, as 11th February 2021, give members an ‘unqualified right to take benefits before age 57, without needing any further consent from the scheme, and;
- The member joined the scheme before 4th Nov 2021
Existing Protected Pension Ages below 55 are unchanged by the new Normal Minimum Pension Age.
Fidelity is undertaking a programme of work to ensure member records and processes accurately reflect the NMPA changes by the regulatory deadline.
What is Fidelity doing about the changes to the NMPA?
- Identifying Protected Pension Ages – We're currently reviewing our member records to identify whether a member can access all their pension at either age 55 or 57. Over the coming months, we’ll update our member records and appropriate member information packs and correspondence will start including this information.
- Separating Protected and Non‑Protected Benefits Transferred to Us – We're updating our processes so that any member benefits transferred to us with a Protected Pension Age will be ringfenced and labelled with the appropriate access age. Members will be notified if any part of their transfer is segregated and members will then be able to see on PlanViewer which parts of their pension benefits they can take when. We anticipate this will be in place for transfers starting early 2027.
- Reviewing Historic Transfers – During 2027, we’ll review historic transfers received since the legislation was announced on 4th Nov 2021 to determine if any part of the transfer was eligible for a Protected Pension Age. This complex review is likely to take some time for Fidelity and other pension providers as it requires sharing information between companies about pension accounts as well as clarification on some regulatory points from HM Revenue & Customs (HMRC).
After we’ve completed this review, we’ll contact members if we need to separate the protected part of their pension. Once the separation is complete, we’ll 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.