Increase to the Normal Minimum Pension Age
In February this year, the Government passed the Finance Act 2022, which contains legislation to increase the normal minimum pension age (NMPA) to 57 on 6 April 2028.
The NMPA is the earliest age from which a member can draw benefits from a pension scheme (apart from on grounds of ill health) without incurring unauthorised payment charges. The NMPA is currently 55 for most people.
If you’re under 55 and planning to retire early, you might need to factor this change into your plans so that you don’t get caught out.
New transfer regulations
Due to the increased risk of pension scams, new rules came into place on 30 November 2021 that require trustees and pension providers to prevent pension transfers if they believe the circumstances to be suspicious. Factors that may give rise to a request for a pension transfer being delayed or possibly even refused include, but are not limited to, a member:
- Not providing sufficient information in relation to the transfer when requested to do so
- Being given financial advice from a company without the appropriate regulatory permissions
- Receiving an unsolicited request to transfer funds from their pension
- Feeling pressured into making a transfer
- Wanting to transfer to a receiving scheme with high-risk, unregulated investments and/or which charges fees that are unclear or noticeably high
It’s important to remember that these regulations have been introduced to make transfers safer. The extra checks involved may also make transfers slower, so please be patient if you’re going through the process, and be aware of the potential delay if you’re considering it.
