One of the less publicised pension changes being planned is the raising of the Normal Minimum Pension Age (NMPA). The change is from 55 to 57. This is to be effective from 2028 and will be included in next year’s Finance Bill. The NMPA is the age that you can usually first access pension benefits without incurring penal tax charges.
Pensions tax rules in the UK are some of the most complicated aspects of UK tax legislation – not ideal when pretty much everyone has to interact with them. The last thing that is needed is anything that significantly adds to this complexity. In particular, where the impacts will be felt for decades.