RPSM08100030 – Technical Pages: Pension age: Phasing in of age 55 by 2010

Phasing in of age 55 by 2010

All registered pension schemes must incorporate the normal minimum pension age of 55 into their rules by 6 April 2010. It is for schemes/employers to decide how and when to make this change in a way that best suits their needs. If schemes do not adopt a normal minimum pension age of 55 by 6 April 2010 and pay benefits out before that age, then they will be making an unauthorised member payment with consequential tax implications.

Where a member starts to take benefits after reaching the normal minimum pensionage of 50 before 6 April 2010 but they are not yet age 55 by 6 April 2010 those benefits can still continue to be paid as authorised payments. If the member wishes to crystallise further benefits after 5 April 2010, to be authorised payments the member must have reached the normal minimum pension age of 55.

Protection for the rights of certain members on 5 April 2006 to take pension benefits before age 55 or 50 may be given in particular circumstances. These circumstances can be found in RPSM03106000.