Increase in Normal Minimum Pension Age from 55 to 57

The Government has confirmed that the Normal Minimum Pension Age (NMPA) will increase from 55 to 57 from 6 April 2028. NMPA is the minimum age that someone can take pension/lump sum benefits from a UK Registered Pension Scheme, for example an employer pension scheme or a personal pension. This applies to SIPPs and SSASs with Morgan Lloyd.

If your plans involve taking benefits from a pension scheme from age 55, you may wish to discuss the impact of this change with a financial adviser. If you are aged 50 or over, you can also contact the Government’s Pension Wise service for free guidance:

Some pension schemes which currently allow benefits to be taken from age 55, will be able to continue to allow this after 5 April 2028. This is known as a Protected Pension Age (PPA). The minimum pension age under Morgan Lloyd’s pension schemes is in line with the NMPA at the timeand a PPA will not apply on this latest increase to the NMPA. Transferring between pension schemes with and without a PPA is complex. If you are considering this, we recommend you discuss with a financial adviser first, to make sure you understand what protection you will have (or may lose) after the transfer.

If you already have a PPA (less than age 55) then this will not be affected, subject to existing rules on how this can be used, and how it can be retained (for example it can be lost on transfer to another pension). Again, we recommend you discuss with a financial adviser before making any decision that may affect your PPA.

The Government have still to publish details on transitional arrangements, covering those who do not have a PPA and have reached age 55 but not age 57 by 6 April 2028. We will provide a further update once these details are published.

The increase in NMPA does not affect the rules on taking benefits earlier due to ill-health (certain conditions must still be met for payment of benefits on ill-health or serious ill-health).

Further information on the increase can be found here:

The information above is based on our understanding of the legislation applicable to UK Registered Pension Schemes, and HM Revenue & Customs rules. It is provided as a summary only and should not be taken as advice - Morgan Lloyd SIPP Services Ltd and Morgan Lloyd Administration Ltd are not authorised to give financial advice and will not be responsible for any decision or action taken as a result of relying on this information. If you are a retail client you should seek financial advice from a financial adviser who is authorised by the Financial Conduct Authority and/or seek guidance from the Government’s Pension Wise service.