What is the Normal Minimum Pension Age?
The Normal Minimum Pension Age (NMPA) is the earliest age at which a person can access and take money out of their pension savings. The NMPA is different from your selected retirement age, which could be much later.
Following the government’s consultation on the implementation of an increase to the NMPA in 2021, it was announced that the age will be rising from 55 to 57 on the 6th of April 2028.
Who will this affect?
So depending on when you were born, this could impact you in different ways.
- If you were born on or before 6th April 1971, you won’t be impacted because you’ll have already reached age 57 by 6th April 2028.
- If you were born after 6th April 1971 but before 6th April 1973, you’ll have a window from your 55th birthday to 5th April 2028 to access your pension savings before the NMPA increases to 57. If you choose not to take any pension savings during this period, you’ll need to wait until your 57th birthday.
- If you were born after 5th April 1973, the earliest date you can access your pensions savings will be delayed by two years.
However, there are, as with most things in life, some exceptions that mean you could qualify to access your pension earlier than the NMPA.
What is a protected pension age?
A protected pension age is an age lower than the NMPA whereby an individual can access their pension. It may apply on a scheme-by-scheme basis.
You may need to check with your provider if your scheme has a protected pension age. If you have multiple pensions, you will need to confirm this with each provider.
Can I withdraw from my pension before the NMPA?
As mentioned, you may be able to access your pension earlier if you have a protected pension age. Other exceptions to the NMPA include being in poor health or working in a certain profession which allows an earlier retirement date.
Accessing your pension will depend on the terms of your policy and you may want to consider finding out if there are any penalties for withdrawing from it earlier or later than planned.
Should I access money from my pension before I retire?
There are all sorts of reasons that you might want to access your pension at an early age. However, it should be noted that the earlier you start taking money out of your pension the less you will likely have to last you in the future. We would recommend getting sound advice on your financial circumstances before this to ensure your pension doesn’t run too low as you get older.
It may sound obvious, but it could be tempting to remove money that you have access to without properly assessing how much you’d have remaining for the years to come.