From 6 April 2028, the Normal Minimum Pension Age (NMPA) - the earliest age most people can access their defined contribution pension - will rise from 55 to 57. This may include workplace and personal pension schemes.
Those born before or on 5 April 1971 won’t be affected as you’ll already be 55 by the time this change comes into place. And individuals born after 5 April 1973 will have the earliest date they can access their pension benefits delayed by two years.
However, there’s a slight quirk for people in the 1971 to 1973 bracket. If you turn 55 between 6 April 2026 and 5 April 2028, you’ll have a short window to start drawing from your pension. If you don’t, you’ll have to wait until your 57th birthday to access your pot.
If savers in this age bracket do not access or ‘crystallise’ their pension before 6 April 2028, they may then have to wait until age 57 to touch their retirement savings - in some cases almost two extra years.
Maike Currie, VP Personal Finance at PensionBee comments: “For some savers this could come as a nasty shock. Many people simply assume they will be able to access their pension at 55, not realising the rules are changing.
“There is a very specific cohort - those born between April 1971 and April 1973 - who face a potential cliff edge. Miss the deadline to access your pension before April 2028 and you could find yourself locked out of your savings for up to two more years.
“That does not mean people should rush to raid their pension. In many cases, leaving savings invested for longer may lead to a healthier retirement pot thanks to a few additional years of extra contributions and investment growth.
“But it does mean people should start planning now. For anyone hoping to retire early, bridge a gap between work and retirement, or phase down working hours in their mid-50s, understanding these dates could be crucial.”
Depending on how you access your pension, you could also trigger the money purchase annual allowance (MPAA). This limits how much you can tax-efficiently pay into your pension each tax year moving forwards (2025/26). You could also use the PensionBee Pension Calculator to see how much income your pension might generate in retirement. You can factor in changes such as when you want to retire, and see what sort of income your pot could provide from 55 or 57 to help you make an informed choice.
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