Get Your Free Report

UK Pension TransfersMake the right decision for your needs

Request your free, personalized report today.
arrow_back

Normal minimum pension age to rise to 57 by 2028

Pension rules are likely to change in the UK, with the Government confirming its plans to increase the Normal Minimum Pension Age (NMPA) from 55 to 57 in 2028. So, what would that mean for UK Pension Transfers?
keyboard_backspace Back

Here’s a top-level summary to get you started, but if you have any questions at all, we welcome you to contact us. Our Pension Transfers team will be happy to walk you through your options.

What’s changing?

In short, the NMPA is the age at which most private pension savers can start accessing their pension funds without incurring an unauthorised payments tax charge. The NMPA is usually 10 years lower than the state pension age.

In 2014, the UK Government announced it would increase the NMPA to age 57, to coincide with the rise of the state pension age to 67 by April 2028. In November 2021, the Government confirmed that it had legislated for this, and provided further details of the proposed changes (subject to the Finance Bill 2021 to 2022 obtaining Royal Assent).

If approved, which seems imminent, the measure is set to affect members of registered pension schemes that don’t have a protected pension age. Members of certain uniformed service pension schemes (like firefighters, police and armed forces) are exempt from the increase.

Thinking of transferring (or have just transferred) your UK pension to New Zealand?

As you may know, when it comes to transferring your UK Pension to New Zealand, you can only transfer your pension funds in a NZ QROPS scheme, which is a scheme approved by Her Majesty's Revenue and Customs (HMRC) and has to comply with UK Pension rules.

Whether the NMPA increase (if approved) will affect you or not depends on your age, and when you transferred your UK Pension to New Zealand. In a nutshell:

  • If you transferred your funds before 4 November 2021, there will be no change: you will be able to withdraw your pension from your QROPS scheme at age 55.
  • If you transferred your funds (or switched from one QROPS to another) after 4 November 2021 and turn 55 before 6 April 2028, you can access your money when you turn 55. However, should there still be funds to withdraw at 6 April 2028, you will have to wait until age 57 to take those.
  • If you transferred your funds (or switched from one QROPS to another) after 4 November 2021 and turn 55 on or after 6 April 2028, you will have to wait until age 57 to access all your benefits.

Like to learn more?

UK Pension transfers can be quite complicated, so it’s important to keep on top of law changes.

If you have any questions about your UK Pension transfer, get in touch: we’re here to help you navigate the rules and understand the implications. Click here to contact us or give us a call on 0800 UK 11 NZ to book a review.

 

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance. Past fund performance is no guarantee of future returns.

close