patience and pension
                     Patience & Pensions
- Cheylesmore Accountant
 
The government recently 
commenced plans to increase 
the age at which people can 
begin to draw down their 
pension pot from 55 years to 57 
Patience & Pensions years. This would imply, once the Bill is passed to legislate 
these plans, savers would have 
to wait an additional 2 years to 
access their savings- either as a 
lump-sum or by withdrawing the 
money over a period of time.
The increase in the normal 
minimum pension age (NMPA) is 
expected to occur from April 2028 
and would coincide with the 
increase in state pension age 
Patience & from 66 to 67 is believed to reflect the evolving demographic 
Pensions changes and heightened life expectancy of individuals in the 
UK. Albeit questions might be 
raised about the impact of the 
pandemic on this data which is 
likely to have been collected prior 
to 2020. 
Patience & 
Pensions
If you’re born post 6 April 1973, the 
move is likely to affect you adversely 
since you would have to wait an 
additional 2 years before dipping into 
your savings. Nevertheless, the 
government has provided savers who 
Patience & wish to maintain the current NMPA of 
55 years the opportunity to transfer 
Pensions their pension into a scheme which 
contains a NMPA of 55 years as of 11 
February 2021. Additionally, the 
transfer of savings is required to be 
completed before 2023 which leaves 
individuals with the best part of a year 
and a half to preserve early 
access to their pensions.
Exempt from this rule change, 
however, are individuals who belong to 
‘Uniformed pension schemes’ which 
comprises the police and fire services 
as well as armed forces who will all 
continue to be entitled to access their 
Patience & pensions from the age of 55 itself. The 
supposed aim of this change in rules is 
Pensions to avoid individuals from becoming bankrupt or insolvent in their 
retirement by encouraging them to 
build up their pension pot for longer. 
This would theoretically improve 
financial stability and wellbeing during 
retirement albeit the supporting 
evidence for this is inconclusive. 
Patience & 
Pensions
This change is amongst many 
relating to pensions in recent years 
which appears to corroborate public 
anger over constantly moving the 
goalposts when it comes to pensions. 
Constant changes in rules have led 
Patience & to majority of the population being 
unable to keep pace with these 
Pensions changes. The result was already 
evident during the pandemic when 
many drew down their 
pension pots earlier than 55 years of 
age and triggered a cut to their 
Money Purchase Annual Allowance, 
which we highlighted earlier. 
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