Countdown to 57: Navigating the 2028 NMPA change for pension schemes
Barnett Waddingham
Technical Supplement November 2024.
In April 2028, the Normal Minimum Pension Age (NMPA) will increase to 57, coinciding with the end of the phased increase in the State Pension Age (SPA) from 66 to 67. Subject to scheme rules, this change will generally allow members to access their retirement benefits up to 10 years earlier than the SPA. With the SPA set to rise to 68 by 2046 (though this date may change), it will be interesting to observe whether the NMPA continues to maintain this 10-year differential in line with future SPA adjustments.
Key Points
- NMPA Recap: A detailed overview of the Normal Minimum Pension Age and its implications.
- Protected Pension Age and Ill-Health Exceptions: An outline of the exceptions to the NMPA, including protected pension ages and provisions for ill-health.
- Impact of Lifetime Allowance Abolition: Insights into the related changes following the abolition of the lifetime allowance.
- Next Steps for Schemes: A summary of the actions that pension schemes should start considering in light of these changes.
Expert Insight
Brian Thorne, Principal, Pension Administration, Barnett Waddingham
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