Treasury plans to allow some people to retain a Normal Minimum Pension Age (NMPA) of 55 while others move to 57 risk creating a ‘hot mess’ of complexity and confusion for savers
Savers can retain the lower NMPA by opening a scheme offering an unqualified right to access their pension at age 55 by 5 April 2023
Unwieldy proposals could be a gift to unscrupulous pension scammers and compromise other Government initiatives
Tom Selby, head of retirement policy at AJ Bell, comments: “The Treasury has taken what should have been a simple reform and turned it into a hot mess of complexity.
“In attempting to provide ‘protection’ for some people from the proposed rise in the minimum pension access age to 57, policymakers will cause outlandish confusion for savers.
“Everywhere you look there are holes and problems in these proposals. Perhaps most worrying is the risk that, by creating a two-tier pension access system, the Government will inadvertently open the door to scammers.
“It is not too late to avoid this madness and we strongly urge the Treasury to step back from the brink.
“Furthermore, there is an alternative way forward which achieves the policy intention and is unbelievably simple – do away with the proposed protection regime and move everyone to a ‘Normal Minimum Pension Age’ of 57 in April 2028.”