HMRC consultation: Normal Minimum Pension Age – filling in the gaps

The Finance Act 2022 made a prospective change to the age from which most people can access their workplace and personal pension benefits, other than in circumstances of ill health. This Normal Minimum Pension Age (NMPA) is increasing from 55 to 57 with effect from 6 April 2028.

Individuals with an unconditional right to draw benefits before 57 will retain that right (a protected pension age), but otherwise a person who is 55 or 56 on 5 April 2028 (when the NMPA of 55 will still apply) may have already started to draw benefits only to find that on 6 April 2028 they no longer meet the conditions to receive benefits and, theoretically, further payments would have to cease until they reach age 57.

This is not the policy intention, and the government noted its intention to introduce transitional protections when Finance Act 2022 was being considered in Parliament. HMRC has periodically reaffirmed that position, and HMRC’s Pensions Newsletter 180 (April 2026) explained what the transitional regulations would cover. The government has now published draft legislation for a technical consultation, and this remains open until 28 September 2026.

These transitional provisions broadly apply where a member has already acquired an actual entitlement to benefits. This does not mean an entitlement under scheme rules, but HMRC’s definition of the term, meaning (again, broadly) that all necessary conditions, information and authority to put a benefit into payment have been met and received.

The draft regulations appear to deliver on the intentions previously outlined by HMRC in Newsletter 180 and provide greater certainty for schemes and affected members. For example:

• Pension Payments: “Where a member was aged 55 or 56 on 5 April 2028 and had already taken steps to access their pension benefits, such as designating funds for drawdown, applying those funds towards the purchase of an annuity, or becoming entitled to a scheme pension, those benefits can continue to be paid on or after 6 April 2028 as authorised payments. For these purposes, the member is treated as having reached age 57 immediately before their first post 6 April 2028 payment.”
• Pension Commencement Lump Sum and Pension Commencement Excess Lump Sum: “Where a member aged 55 or 56 on 5 April 2028 had already become entitled to a lump sum that would have qualified as a pension commencement lump sum or pension commencement excess lump sum had it been paid on or before that date, but no payment had been made, that lump sum can still be paid on or after 6 April 2028 as an authorised payment. In these cases, the member is treated as having reached age 57 immediately before the lump sum is paid.”

The regulations also cover standalone lump sums and trivial commutation lump sums (TCLS) where entitlement arises, but is not paid, before 6 April 2028. In relation to trivial commutation lump sums, any remaining TCLS payments (that meet all other necessary conditions for payment) may continue to be made within the existing 12-month payment window, even if that window extends into the 2028/29 tax year.

However, the draft regulations do not extend to Uncrystallised Funds Pension Lump Sum (UFPLS) payments. These are permitted payments under defined contribution arrangements. As each UFPLS constitutes a separate benefit crystallisation event, HMRC entitlement to each will also arise separately. Individuals who have already taken any UFPLS payments before 6 April 2028 will, unless they have a protected pension age, need to wait until age 57 before receiving any further UFPLSs.

The regulations will avoid bizarre outcomes for, and difficult communications with, most of those who are 55 or 56 on 5 April 2028 who have already started to draw benefits. However, anyone in those same age categories who plans to draw retirement income through a series of UFPLS payments may need to reconsider.