Recent changes to normal minimum pension age protections

The normal minimum pension age is the earliest age that you can usually access your pension savings and is set by the government. This is currently age 55 – however this is rising to age 57 from 6 April 2028. This change will not affect your ability to take money earlier than these ages due to ill health, or if you qualified for an earlier protected pension age. You don’t have to take your money at any of these ages, you can keep your money where it is for as long as you want, or until you need it.

Some schemes, such as The People’s Pension, provide protections which would allow you to continue taking your pension money at age 55 beyond 6 April 2028. However, the government recently announced that these protections cannot be provided to new joiners from 4 November 2021 onwards.

---

I’m a member of The People’s Pension – do I have age 55 protection?

This depends on when you joined the Scheme:

Before 4 November 2021 – you have a protected pension age of 55 and this change won’t affect you. So, you can continue to access all your pension savings from age 55, both now and after 6 April 2028.

On or after 4 November 2021 – your normal minimum pension age will be 57 from 6 April 2028. An exception to this is where you transfer money into The People’s Pension (see below).

If you reach age 57 before 6 April 2028, this change won’t affect you.

---

Will I retain/gain age 55 protection if I transfer savings into The People’s Pension?

If you joined before 4 November 2021, any pension pot transferred to us can be accessed from age 55 after 6 April 2028.

If you joined on or after 4 November 2021, the age the transferred pot can be accessed will depend on the rules of the pension scheme they came from. This can get complicated so here’s a couple of examples:

1) Old scheme did not have age 55 protection:

• You transfer money to us from a pension scheme whose rules have a minimum pension age of 57 (ie no protection).
• You can only access the pension pot built up with the transferred savings from age 57 after 6 April 2028.

2) Old scheme did have age 55 protection:

• You transfer money to us from a pension scheme whose rules allowed the money to be taken from 55 after 6 April 2028.
• You can access the pension pot built up with the transferred savings from age 55 after April 2028.
• However, you can only access the contributions you and your employer have paid in (including any tax relief and investment growth) from your pension pot from age 57 after April 2028.

---

Will I lose my age 55 protection if I transfer my savings out of The People’s Pension?

If you’re thinking about moving your pension from The People’s Pension, you should consider if the new pension provider will allow you to take money from age 55 after 6 April 2028. As other providers may not offer this option, you could lose this right for all practical purposes when you leave The People’s Pension.

Making decisions about a pension with protections can be complicated. So, you may need some help – either guidance or professional advice. Find out more

Note: This statement is based on our current understanding of UK law.