Savers will have to wait until age 57 to access pension funds from 2028

The normal minimum pension age - the minimum age at which most pension savers can access their pensions without incurring an unauthorised payments tax charge unless they are retiring due to ill-health is to rise from age 55 to 57 in 2028. In its policy paper Increasing the normal minimum pension age for pensions tax the government states that raising the normal minimum pension age to age 57 could encourage individuals to save longer for their retirement so help ensure that they will have financial security in later life.

Members of uniformed public service pension schemes and those with unqualified rights to take their pension below age 57 will be protected from these changes. It has also been decided that individuals will be able to keep their protected pension age if they transfer their pension.

There may be some transitional issues. For example an...