What happens if you straddle pension age increase?

Marcon

Sea_Shell said:

bownyboy said:

I want to assure your constituent the legislation to increase the Normal Minimum Pension Age (NMPA) will include transitional rules to protect people who were born between 5 April 1971 and 5 April 1973, and who have already become entitled to, and started to receive their pension. People in these circumstances will be entitled to continue receiving their pension benefits after 5 April 2028, subject to the specific rules of their pension scheme.

The word AND jumped out at me.   

So, unless I'm missing it, this doesn't clarify what happens to someone who will turn 55, but doesn't start to claim their pension immediately on hitting 55.

I think it does. 'People in these circumstances will be entitled to continue receiving their pension benefits after 5 April 2028' makes it pretty clear that if someone hasn't accessed their pension benefits from a particular scheme before 6 April 2028 are subject to the new MPA in respect of that scheme.

bownyboy

Yes, the more I read it the more I'm thinking it assumes you have crystalised your whole pot and are in drawdown. 

For me I just want to take a single UFPLS of £16,670 each year. 

Silvertabby

My reading of this is that those who started to take DBs/annuities at 55 would continue to receive them.  That's what happened the last time the minimum age was raised (50 to 55 in 2010).

What is not so clear, however, is if the same protections would apply to those who opt for drawdown.  

NoMore

Newsletter 178 — February 2026 - GOV.UK

Work on the transitional regulations that will support the implementation of the normal minimum pension age increase is ongoing. These regulations are intended to ensure that individuals who are entitled to and have already begun receiving their pension benefits can continue to do so without interruption.

An update, at last but still no detail.

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/comment/81906308#Comment_81906308

To be blunt - and I realise it is not the fault of anyone in this thread - but that really smacks of absolute and total incompetence as there is insufficient time really remaining to allow those that may be affected to properly plan given the impact date is only a year away.

NoMore

The change is due on 6 April 2028, so two years away, however the impact date is 6 April 2026, if you turn 55 after then until 6 April 2028, this will affect you.

Obviously, the closer to 6 April 2026 your 55 birthday is the less it's a problem.

For me I turn 55 in April 2027 so smack bang in the middle of the window

SnowMan

The newsletter does seem to confirm that if you reach age 55 before 6th April 2028 and start taking benefits before 6th April 2028, you can continue to take benefits after 6th April 2028 even if you are below age 57 for a period of up to 2 years. That is new information as far as I am aware and very important for anyone reaching age 55 between 6th April 2026 and 5th April 2028 who doesn't have a protected pension age of 55.

bownyboy

I do wonder what 'taking benefits' actually means. For example I'm only interested in taking £16,670 as an UFPLS payment every April from next year when I reach 55. The cynic in me thinks that they will say that the rest of my uncrystalised pot is not a benefit and therefore I cannot touch the rest until I reach 57.

I don't want to do FAD with a big 25% lump sum as it will mean additional tax sitting outside the SIPP.

Fruga

https://forums.moneysavingexpert.com/discussion/comment/81906308#Comment_81906308

good find thanks, subscribed to those newsletters!

Cobbler_tone

I thought it was pretty clear. If you are 55 and start taking the pension before the change you are OK. If the date passes you have to wait until you are 57 (unless protected NRA). I haven't read anything that once you have accessed a pension, you won't be able to access it again until you are 57.

I just see it leading to some people taking that opportunity to retire early (55) and others resetting the target to their 57th birthday.