Pension age is changing as some Britons set to wait longer for access

A rule change is set to kick in in just a few years which could see pension savings and retirement plans impacted. The normal minimum pension age (NMPA) is a rule which states most people must wait until 55 before they are able to flexibly access their pension savings.

Access before this point typically requires Britons to pay a hefty tax charge which many will want to avoid.

However, the NMPA rules are changing and could affect thousands of workers in the coming years. 

From April 6, 2028 onwards, this age will increase to 57, meaning eligible people will have to wait longer before they can begin to take money from their pension.

This could significantly disrupt the existing retirement plans of Britons, who may need to adjust their expectations.

READ MORE: State pension age increases are changing

“This could be a particular problem for those in hardship or facing cost of living pressures, for whom accessing a small pension pot could be a useful source of financial flexibility.”

There are some instances where a person might be able to take money from their pension pot earlier than the NMPA.

For example, if a person has serious ill health, they may be able to access their savings.

As examples of access before 55 are so rare, people should always remain on guard about supposed offers for early access.

These can often be scams, and Britons could face a hefty tax penalty, as well as other charges on what they withdraw.

Previously, the Financial Conduct Authority (FCA), has warned Britons to look out for offers such as ‘pension liberation’ or ‘pension loan’, as a warning flag.