When can you access your pension pot?

Written by Retirement Line

Last Updated: 5th September 2024

Our guide to the Normal Minimum Pension Age

The Normal Minimum Pension Age (NMPA) is the age at which you can typically access your pension savings. It will increase from 55 to 57 in 2028.

This guide will explain what the NMPA is, the reasons behind the change from 55 to 57, and how it might affect your retirement plans.

On this page:

• What is the Normal Minimum Pension Age (NMPA)?

• When is the pension age changing from 55 to 57?

• When can I access my pension pot?

• The ‘odd’ pension rule for people born between 6 April 1971 and 5 April 1973

• Are there any exceptions to the NMPA?

• Things to consider if you are planning early retirement

What is the Normal Minimum Pension Age (NMPA)?

The Normal Minimum Pension Age (NMPA) is the earliest age at which you can usually access savings within a pension scheme without incurring significant tax charges.

In the case of a defined contribution (‘money purchase’) pension, when you access your savings you can use them in a number of ways. These include buying an annuity, setting up income drawdown and taking one or more lump sums.

As it stands, the NMPA in the UK is currently set at 55 years old, having last risen in 2010 from 50. However, this is set to change in 2028, when the NMPA will increase to 57.

Of course, you don’t have to access your retirement savings when you reach the NMPA. People typically retire later than this age, often continuing to contribute to their pension savings in order to increase their future retirement income. 

When is the pension age changing from 55 to 57?

The change in the normal minimum pension age from 55 to 57 will take effect from 6 April 2028. This was announced following the consultation on ‘Freedom and Choice in Pensions’ in 2014.

The change is being introduced so that there will continue to be ten years between the Normal Minimum Pension Age and the State Pension age. The State Pension age is rising from 66 to 67 (and possibly 68) in phases. The State Pension age increase will affect those born after 5 April 1960.

When can I access my pension pot?

The increase in the Normal Minimum Pension Age to 57 will typically affect individuals of registered pension schemes who were born on or after 6 April 1971. 

However, the rules apply differently to some people depending on their exact date of birth, as shown in the table below.

For people in their late 40s and early 50s in particular, the change in NMPA may need some adjustment of your plans. Were you considering early retirement? Or maybe planning to use some of your pension savings to pay off the mortgage? Now could be the time to review your situation.

The ‘odd’ pension rule for people born between 6 April 1971 and 5 April 1973

The State Pension age increase from 66 to 67 will happen in planned phases between April 2026 and April 2028. However, the increase in the NMPA from 55 to 57 will happen overnight on 6 April 2028. 

It means you may need to plan very carefully if you intend to access your pension savings at age 55. For some people, the window to do so could be particularly short.

This short window applies to people born between 6 April 1971 and 5 April 1973. They will have a period when they can access their pension at 55. But if they run out of time before doing so, they will have to wait until their 57th birthday instead.

Steve Webb, former Pensions Minister recently explained this in an article he wrote for This Is Money:

“This creates a very odd situation for people born in a two-year window. Suppose, for example, that you were born on 5 April 1973. In this case you will reach age 55 on 5 April 2028 and can therefore immediately access your pensions on your 55th birthday. 

However, if you miss that day (perhaps because you are busy celebrating your birthday) you will wake up the next morning to find that you now cannot touch your pensions for another two years.”

The above scenario does not apply to those who qualify for an exception to the NMPA.

Are there any exceptions to the NMPA?

Yes, there are some circumstances in which you may not be bound by the NMPA: 

Public sector pensions

The increase only applies to private pensions, including personal pensions and workplace pensions. Public sector workers within specific retirement schemes are typically exempt from this change. These include those in the armed forces, police and firefighters. 

Ill-health retirement

You may be able to access your pension savings before the NMPA because of poor health. This recognises that it would be unfair to stop you from accessing your pension fund early if, for example, your life expectancy is severely affected by illness. The exemption may also apply if you are unlikely to return to work, even if your condition isn’t life-threatening.  

Each pension scheme will have its own rules for ill-health retirement (sometimes known as medical retirement). Ask your pension scheme provider or scheme administrator for more information if this is of interest to you.

Protected pension age

Another protection is known as the ‘protected pension age’. If your pension scheme rules say you can access your fund ‘at age 55’ for example, rather than NMPA, then this is your ‘protected pension age’. You will therefore retain the right to access your pension at this age, even after the NMPA rises in 2028. 

This applies if you joined the scheme before the cut-off date of 4 November 2021. The protection also applies only if the protected age was included in the scheme’s rules as at 11 February 2021. 

Transferring your pension to another scheme could result in losing this protection. It is therefore crucial to check with your pension provider when considering a transfer.

Things to consider if you are planning early retirement

If you are planning to retire at 55 or 56 and the change will affect you, it's essential to review your financial plans. You may need to reconsider your retirement age or explore alternative sources of income to cover the period between 55 and 57. 

If the change to the NMPA will affect you, but retiring at 55 remains your goal, consider how this increase might affect your lifestyle. You may need to save more, take on part-time work, or consider other income sources such as investments to maintain the standard of living you envisioned for those early retirement years.

Use our free annuity calculator 

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