PPA The minimum pension age is changing- frequently asked questions

Yes, the Transfer Amount(s) will be invested using the investment options selected for these transfer payments under your existing plan.

Yes, the plan charges will be the same under both plans.

Royal London are unable to give you any tax/financial advice, so we recommend that you speak to a financial adviser. A financial adviser can give you personalised advice and recommendations. If you don't already have an adviser, you can find one here.

Advisers will usually charge for their services.

There’s a free guidance service also available through the government backed website Pension Wise (opens in a new window) that is available for people over age 50.

No. Choosing to retain your PPA does not mean that you must take your retirement savings under the new plan at age 55 , only that you still can if you choose to. If you decide not to take the benefits at that time, your pension savings will remain invested in the plan.

No further contributions can be paid into the new plan, other than any additional transfer payment(s) with the same PPA.

If the scheme rules allow it, it's possible for benefits to be taken from age 55 (or earlier due to ill-health). This normal minimum pension age is increasing to 57 in 2028 for most people. The increase to age 57 will not apply to members of the firefighter, police and armed forces public service pension schemes or individuals retiring due to ill health.

The retirement age range is from 55 (increasing to age 57 in 2028) with no upper age limit. This applies to all schemes, including those that were set up for people who have traditionally been allowed low normal retirement ages for example, professional sports people and models. There are transitional arrangements for those with these low retirement ages before 6 April 2006 (A-Day) who retire after A-Day.

There are still occupational pension schemes that have a normal retirement age below age 55. These schemes relate to the Armed Forces, Police and Fire Brigade.

Under all of the following types of ill health the Trustees of the scheme will need to obtain medical evidence that proves the individual is incapable of carrying out their job because of physical or mental impairment.

Ill-health

It's possible for individuals to take their benefits before age 55 in the case of ill-health.

The scheme administrator must receive medical evidence that the individual is, and will continue to be, medically incapable (either physically or mentally) of continuing his or her current occupation as a result of injury, sickness, disease or disability, and as a result of the ill-health the individual ceases to carry on that occupation.

The normal tax-free cash rules apply to the benefits paid.

The annual allowance applies in the year benefits are taken.

Severe ill-health

It's possible for individuals to take their benefits before age 55 in the case of severe ill-health.

The individual must be unlikely to be able to do any type of gainful work, other than in an insignificant way, before State Pension Age.

The normal tax-free cash rules apply to the benefits paid.

The annual allowance does NOT apply in the year they are taken.

Serious ill-health

It's possible for individuals to commute their benefits for a lump sum on the grounds of serious ill health. There is no minimum age.

Before this can be done the trustees will need to obtain medical evidence that the individual's life expectancy is less than 1 year.

If the individual is under age 75 it's paid tax-free. If the individual is 75 or over, the benefits are taxed at their marginal rate of tax.

If benefits are taken under the serious ill-health rules the annual allowance does NOT apply in the year they are taken.

In all of the above cases, restrictions apply to Guaranteed Minimum Pension benefits.

HMRC - Pensions Tax Manual - PTM051200 - when the annual allowance charge does not apply

HMRC - Pensions Tax Manual - PTM062100 - Early payment of benefits on health grounds

HMRC - Pensions Tax Manual - PTM063400 - lump sums: serious ill-health lump sum

Legally there is no upper age by which an individual must take benefits.

However, some products may have a maximum age that benefits must be taken by. You should check with the provider.

The minimum pension age is increasing to 57 from April 2028. The increase to age 57 will not apply to members of the firefighter, police and armed forces public service pension schemes or individuals retiring due to ill health.