Introduction
Planning for retirement? Be prepared for an upcoming change that could affect when you can access your pension money. Let’s explore this change and break down what it means for you, ensuring you can approach your retirement with confidence.
The Change
Currently, the normal minimum pension age (NMPA) in the UK is 55, allowing individuals to start accessing their pension savings. However, from 6 April 2028, the NMPA will increase to 57, impacting the timeline for different age groups.
How It Affects You
Born after 5 April 1973
Your earliest pension access date will be delayed by two years.
Review your plans to see if adjustments are needed, considering potential impacts on retirement income.
Born between 6 April 1971 and 5 April 1973
You have a window from your 55th birthday to 5 April 2028 for pension access before the NMPA increase.
Consider your options and make decisions based on what best suits your circumstances.
Born on or before 6 April 1971
No impact as you’ll already have reached age 57 by 6 April 2028.
What You Need to Do
Born after 5 April 1973
Review existing plans and make adjustments if needed.
Consider speaking to an HCI financial planner or using a pension calculator to ensure your savings align with your retirement goals.
Born between 6 April 1971 and 5 April 1973
Option 1: Access pension savings before the window closes.
Option 2: Wait until you turn 57.
Evaluate your goals and consult an HCI financial planner if needed.
Born on or before 6 April 1971
No action required; your retirement plans remain unaffected.
Retirement Date Review
Check the retirement date on your plan; it might be set to your 55th birthday.
Adjust the date to align with your actual retirement plans, considering potential impacts on investments.
Conclusion
Stay informed and take proactive steps to adapt to these upcoming changes in pension access. Regularly reviewing and adjusting your retirement plans ensures a smoother transition into this next chapter of your life.
If you are looking to discuss your NMPA, your financial plan or investments, please get in touch with one of our Financial Planners for tailored, regulated, and independent advice.
