Millions of pension savers born between 6 April 1971 and 5 April 1973 could face an unexpected two-year delay in accessing their retirement savings unless they take action before April 2028, PensionBee has warned.
Rule Change on Minimum Pension Age
From 6 April 2028, the Normal Minimum Pension Age (NMPA) — the earliest age at which most people can access their defined contribution (DC) pension savings — will rise from 55 to 57. This change will affect millions of savers, but a specific cohort faces a potential cliff edge.
Those born on or before 5 April 1971 will not be affected, as they will already have reached age 55 before the rule change comes into force. Conversely, those born after 5 April 1973 will automatically face a minimum access age of 57.
The Cliff Edge for Middle Cohort
PensionBee highlighted that individuals born between 6 April 1971 and 5 April 1973 are in a precarious position. Those turning 55 between 6 April 2026 and 5 April 2028 have a limited window to start drawing from their pension. If they do not access or “crystallise” their pension before 6 April 2028, they may have to wait until age 57, potentially delaying access by almost two years.
Maike Currie, vice president of personal finance at PensionBee, described the rule change as a potential “nasty shock” for some savers. “Many people simply assume they will be able to access their pension at 55, not realising the rules are changing,” she said. “There is a very specific cohort that faces a potential cliff edge. Miss the deadline to access your pension before April 2028, and you could find yourself locked out of your savings for up to two more years.”
Planning for the Future
Currie added that while leaving savings invested longer could lead to a healthier retirement pot due to additional contributions and investment growth, planning is essential. “For anyone hoping to retire early, bridge a gap between work and retirement, or phase down working hours in their mid-50s, understanding these dates could be crucial.”
PensionBee urges affected savers to review their retirement plans now and consider crystallising their pension before the 2028 deadline to avoid the two-year delay.
