Will changes to the Normal Minimum Pension Age impact you?

Introduction

If you’re hoping to step away from the classroom a little sooner, you may be considering early retirement.

Under current rules, the earliest you can normally access your pension from is age 55. However, changes to the Normal Minimum Pension Age (NMPA) are on the way.

Find out what these changes could mean for your retirement plans and what you need to know if you’re hoping to retire earlier.

What’s changing?

From 6 April 2028, the NMPA will increase from 55 to 57.

This means that, you may no longer be able to retire and claim your Teachers’ Pension Scheme (TPS) benefits before the age of 57. However, some members may have protection that lets them access their pension from age 55.

For example, if you had service in the TPS up to 3 November 2021, you may have a protected pension age. This will depend on your circumstances and scheme membership.

The increase will mainly affect those who first joined the TPS after 3 November 2021. And, if you need to retire due to ill health, this will not be impacted by the changes.

It’s important to remember that the minimum pension age is the earliest age you can usually access your pension, not the age at which you’re required to retire.

What if you’re a member of another pension scheme?

The increase to the NMPA will affect most registered pension schemes, although some members may have protections that allow them to access their pension benefits earlier.

If you’ve built up benefits in multiple pension schemes, the age at which you can access them may differ. Understanding how the rules apply to each of your pensions can help you plan more effectively for retirement.

A Specialist Financial Adviser can help you to understand how changes to pension rules could affect your retirement plans.

Planning for early retirement

If you’d like to retire before you’re able to access your pension, you’ll need enough income or savings to cover the period between leaving work and drawing your pension benefits. This is where specialist financial advice can help.

An adviser will take the time to understand your retirement goals and future income needs. They’ll work with you to create a tailored plan to help you achieve your aims, whether that’s retiring early or building additional savings for later life.

Book an appointment to help get your retirement plans in shape. Charges may apply. We will not charge you until you have agreed the services you require and the associated costs.