Case Study: The NMPA Change and Simon's Plan to Retire at 55 (2026 Guide)

The normal minimum pension age (NMPA) rises from 55 to 57 on 6 April 2028, and it applies to defined benefit (DB) pensions as well as SIPPs and other DC pensions. Transferring a DB pension to a SIPP does not get round it, and it can even lose a protected pension age. In this illustrative example, the likely outcome of regulated advice is to keep the DB pension and bridge the gap with other savings and part-time work.

Quick summary

• Illustrative example: "Simon", 53, an operations director in North Yorkshire
• Pension: DB scheme with a CETV of £298,000 and a projected income of £12,400 a year from 65
• Goal: step back from full-time work at 55, in September 2028
• NMPA change: rising from 55 to 57 on 6 April 2028. Simon turns 55 after that date, so unless he has a protected pension age he cannot take any pension before 57
• Required return: 6.9% a year in this example
• Likely outcome of regulated advice: keep the DB pension and use an income bridge

When the government confirmed that the normal minimum pension age would rise from 55 to 57 on 6 April 2028, many people planning to retire in their mid-50s assumed it would not affect them, or that moving their pension would get round it. Imagine "Simon", a 53-year-old operations director from North Yorkshire, who wants to stop full-time work at 55.

This illustrative example explores the real impact of the NMPA change on retirement planning, the DB transfer question Simon is asking, and why a carefully planned income bridge is likely to be more sensible than transferring a substantial final salary pension.

Simon's situation

Simon, 53, has spent 26 years with a medium-sized manufacturing firm and is a deferred member of its defined benefit pension scheme, having moved to a new employer last year. After a demanding career, he has a clear goal: step back from full-time work at 55, in September 2028.

His financial position:

• DB pension: CETV £298,000. Projected income of £12,400 a year from the scheme's normal pension age of 65, increasing with RPI. The scheme allows early retirement with a reduction for early payment.
• SIPP (DC pension): £94,000 from previous workplace pensions.
• ISA: £41,000 in stocks and shares.
• Cash savings: £15,000.
• State Pension: forecast to be the full new State Pension from 67 (38 qualifying years so far). That is £241.30 a week, about £12,548 a year, at 2026/27 rates.
• Mortgage: paid off.
• Outgoings: about £2,800 a month (£33,600 a year) while working, which he expects to fall to about £28,000 a year once retired.

Important: the NMPA change. From 6 April 2028, the normal minimum pension age rises from 55 to 57. It applies to registered pension schemes generally, so it covers DB schemes as well as SIPPs and workplace DC pensions. The main exceptions are retirement because of ill health, members of some uniformed public service schemes, and people with a protected pension age. Our article on retiring at 55 explains the change in more detail.

The NMPA problem Simon hadn't anticipated

Simon's original plan seemed straightforward: stop working at 55, draw on his SIPP for living costs, and take the DB pension at 65.

When he looks at the dates, though, a problem appears. Simon turns 55 in September 2028, five months after the NMPA rises. That means:

• he cannot take money from his SIPP at 55. He will have to wait until 57, in September 2030
• the same applies to his DB pension. Even though the scheme allows early retirement, it cannot pay him before 57 unless he has a protected pension age
• his scheme confirms that, in this example, Simon does not have a protected pension age

Key point: protected pension age. Some people keep the right to take their pension before 57. Broadly, this applies where the scheme rules on 11 February 2021 gave members an unqualified right to take benefits before 57. Protection usually belongs to that particular scheme, and it is generally lost on an individual transfer out. The rules are technical, so check with your scheme administrator before assuming you have, or don't have, a protected pension age.

Why Simon starts asking about a DB transfer

Facing two years between 55 and 57 with no pension income, Simon wonders whether transferring his DB pension might give him more flexible access and a larger pot to draw on.

His thinking is understandable: "If I transfer my DB pension into my SIPP, I'll have a combined pot of nearly £400,000. Even after tax, that could fund a comfortable retirement until the State Pension starts."

A regulated adviser with the pension transfer permission would look at this carefully. The first point is simple: a transfer would not help with the gap between 55 and 57 at all, because a SIPP is also subject to the NMPA of 57.

How a regulated adviser would analyse the transfer

The adviser would still look at whether transferring the CETV of £298,000 could make sense for flexibility after 57. This would include the FCA's required transfer value comparator (TVC) and cash-flow modelling. In this example:

• CETV offered: £298,000.
• Projected DB income at 65: £12,400 a year, increasing with RPI.
• Transfer value comparator: replacing £12,400 a year of guaranteed, RPI-linked income with an annuity at 65 is estimated to cost about £390,000 to £410,000. So the CETV of £298,000 is worth about 73p to 76p for every £1 it would cost to replace the income.
• Required return: 6.9% a year after charges, consistently, to match the income the DB scheme would provide.

Important: a required return of 6.9% a year would need a portfolio taking significant investment risk, with no guarantee of success. It matters even more for someone who plans to start drawing money early. Taking withdrawals while markets fall can permanently damage a fund, which is known as sequencing risk. A bad year early in retirement does more harm than the same bad year later on.

What Simon would give up by transferring

Beyond the required return, the analysis would highlight what Simon would be giving up:

DB pension (kept)	SIPP (after a transfer)
£12,400 a year guaranteed for life from 65	No guarantee. The fund could run out
RPI-linked increases each year under the scheme rules	Returns uncertain. Inflation risk sits with Simon
Spouse's pension for his wife (about 50% in this scheme) for life	No automatic spouse's pension. Death benefits depend on his nomination
The scheme and employer carry the investment risk	Simon carries all the investment risk
Pension Protection Fund cover if the employer fails	No PPF cover. The FSCS may cover provider failure, up to its limits
Early retirement option under the scheme rules (from 57, as he has no protected pension age)	Access from 57 as well, so no gain in access

That last row matters. Simon assumed a transfer would give him more access. In practice, both routes open at 57. If he had a protected pension age in the DB scheme, transferring would usually have made his access worse.

Key point: DB early retirement and the NMPA. Many DB schemes allow early retirement with a reduction for early payment. The NMPA sets the earliest age at which that can happen, unless you have a protected pension age or retire through ill health. Transferring to get at pension money earlier rarely works, and can backfire.

A possible income bridge: keep the DB pension

Rather than transferring, an adviser would typically model an income bridge: a plan using Simon's other money to cover the years before his guaranteed incomes start.

The first thing the cash-flow model shows is that Simon's SIPP, ISA and cash (about £150,000 in total) could not, on their own, fund £28,000 a year for the 12 years from 55 to 67. A workable plan in this example combines several things:

• Part-time consultancy work from 55 to about 60, which Simon is keen to do anyway.
• ISA and cash savings to cover the gap between 55 and 57, when no pension can be taken.
• SIPP drawdown from 57. Each withdrawal can be taken partly tax-free (usually 25%), and the rest is taxed as income.
• The option to take the DB pension early, at a reduced rate, if his savings are running lower than planned by 60. The scheme can quote early retirement figures.
• The full DB pension from 65 and the State Pension from 67 as a guaranteed floor for the rest of his life.

Simon's income bridge (illustrative)

Age	Main income sources	Guaranteed income
55 to 57	Part-time work, ISA and cash (no pension access)	None
57 to 60	Part-time work and SIPP drawdown	None
60 to 65	SIPP drawdown and remaining ISA, with the option to take the DB pension early at a reduced rate	DB pension only if taken early
65 to 67	DB pension in full, with SIPP top-ups	£12,400 a year
67 onwards	DB pension and State Pension, with any remaining SIPP	about £24,950 a year

From 67, Simon would have about £24,950 a year of guaranteed, inflation-linked income in this example, with any remaining SIPP as a flexible top-up. Figures are in today's money and are illustrative only.

Checking for forgotten pensions

People planning an early retirement often find they have more pension savings than they thought. Small DC pots from earlier jobs are easy to lose track of. The government's free Pension Tracing Service can help find old workplace pensions, and any pots found could strengthen the bridge.

The 2027 pension IHT changes

Unused pension funds and most pension death benefits are due to come into the scope of inheritance tax from 6 April 2027. This is a significant change for anyone holding large DC pensions with the aim of passing wealth on.

For Simon, it is one more reason not to treat a transferred pot as an inheritance vehicle. Moving money from a pension into an ISA doesn't take it outside his estate either, because ISAs already count for inheritance tax. The sensible step is to review his will and expression of wishes and take estate planning advice based on the final rules.

His DB pension works differently. It pays a guaranteed income for life, and on his death his wife would receive a survivor's pension. There is no pot to leave to children from a DB income, but there is also no pot to run out.

Getting regulated advice and help

Simon's example shows why advice matters when a DB transfer is being considered. If your safeguarded benefits are worth more than £30,000, the law requires you to take advice from an FCA-authorised adviser with the pension transfer permission before you can transfer. The FCA's starting assumption is that a transfer is unlikely to be suitable for most people, and the decision is usually irreversible.

In this example, the process shows that what looked like an access problem had a better answer that keeps his guaranteed lifetime income.

Free, impartial guidance is available from MoneyHelper, and if you're 50 or over you can book a Pension Wise appointment about your DC pensions. Be very wary of anyone offering to help you get at your pension before the minimum age. Early access offers are a classic sign of a scam, and the FCA's ScamSmart pages explain what to look out for.

I don't give pension transfer advice. If it would help, you can book a free, no-obligation chat about how DB transfers and the advice process work. It's general information, not advice. If you then want regulated advice, I can introduce you to an FCA-authorised firm that holds the pension transfer permission. Arthur Browns may receive a fee from the firm we introduce you to if you become their client. Introductions are for UK residents with a transfer value of £50,000 or more.

Seven lessons from Simon's example

1. The NMPA applies to DB pensions too. From 6 April 2028, a DB scheme generally cannot pay you before 57 unless you have a protected pension age or retire through ill health. Transferring to a SIPP doesn't improve access, and can make it worse.
2. An income bridge is often a better answer than a transfer. If you have DC savings, ISAs and cash alongside a DB pension, a planned drawdown approach may meet short-term needs without giving up guaranteed benefits.
3. Check your dates. If you turn 55 after 6 April 2028, the new age of 57 is likely to apply to you. If you are 55 or 56 on that date, the rules are more complex, so check with your providers before relying on access.
4. The higher the required return, the more risk you take simply to match what the DB scheme already guarantees.
5. The spouse's pension has real value. It's easy to focus on the CETV and overlook the survivor's income, which for a married person can be worth a great deal.
6. The 2027 IHT changes affect pots, not DB income. Unused DC pensions are due to come into inheritance tax, and ISAs are already in your estate, so take proper estate planning advice rather than moving money between wrappers.
7. Plan early. Starting two years or more before your target date gives time to check protected pension ages, trace old pots and build a bridge. Leaving it to the last few months can limit your options.

FAQ: the NMPA change and DB pension transfers

Will the NMPA rise to 57 affect my defined benefit pension?

Usually, yes. The rise from 55 to 57 on 6 April 2028 applies to registered pension schemes generally, including DB schemes, not just SIPPs and workplace DC pensions. Your scheme's own rules then set when you can retire and how much the pension is reduced for early payment. The main exceptions are ill-health retirement, some uniformed public service schemes and people with a protected pension age. Transferring a DB pension to a SIPP doesn't avoid the change.

Can I still retire at 55?

You can stop working whenever you like, but taking pension money at 55 depends on your dates and your scheme. If you reach 55 before 6 April 2028, you can currently take pension benefits from 55. If you will be 55 or 56 on that date, check carefully with your providers, because the rules for that group are complex. If you turn 55 after that date, the minimum age will generally be 57 unless you have a protected pension age. Other savings, such as ISAs, can be used at any age.

What is a protected pension age and do I have one?

A protected pension age lets some people take their pension before 57. Broadly, it applies where the scheme rules on 11 February 2021 gave members an unqualified right to take benefits before 57. It usually applies only within that scheme and is generally lost on an individual transfer out. Ask your scheme administrator whether you have one.

Is it worth transferring my DB pension to avoid the NMPA change?

A transfer doesn't avoid the change, because a SIPP is also subject to the NMPA of 57. If your DB scheme gives you a protected pension age, transferring could lose it. Add the loss of guaranteed income, the spouse's pension and inflation protection, and transferring for NMPA reasons alone is very hard to justify. An income bridge using other savings is often the more practical route.

How do I find a regulated adviser for DB transfer advice?

Check the FCA Register to make sure a firm is authorised and holds the specific permission to advise on pension transfers. Ask how they charge: since 1 October 2020, most firms cannot charge only if you go ahead with a transfer (known as contingent charging), apart from limited exceptions for serious ill health or serious financial hardship. You can also book a free chat with me about how the process works, and I can introduce you to an FCA-authorised firm with the pension transfer permission if you want advice.

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This is an illustrative example. Simon is hypothetical, and all figures are examples only, based on assumptions that may not apply to you. Nothing in this article is advice or a recommendation to transfer or keep any pension. Please read our important information.