Don’t ignore change in retirement age, warns financial expert

A leading West Midlands financial expert is offering advice in the wake of the “normal minimum pension age” (NMPA) being increased.

The age is set to rise from 55 to 57 in April 2028, which Mike Jordan, founder of Sutton Coldfield-based Jordan Financial Management, warns could interfere with your retirement plan.

Mike (pictured), who has been providing trustworthy and professional advice for more than 25 years, advises those who were planning to retire at 55 to check and update their retirement plans.

He said: “Even if your planned retirement date seems far away, creating a plan now could help you bridge a potential shortfall, so you’re still able to give up work when you’re ready to”

According to government figures published in October 2024, the average age of retirement is 65. If you are among those planning to retire in your 60s, the rising NMPA may not affect you – though the State Pension Age is also set to rise to 67 in 2028.

Mike said: “Understanding your potential later-life income is crucial to keeping your retirement on track, even when policy changes.

“Around 10 per cent of Brits expect to retire before the age of 60, so it’s essential to keep on top of policy changes and understand what they mean for you.”

Mike suggests there are several steps you can take to prepare for the pension change, which may allow you to keep your retirement age at 55 – or even earlier.

The starting step is to check the details of your pension, as some pensions fall outside the range of the NMPA.

Mike explained: “If you have an older workplace or personal pension, it may have a protected pension age, which may ensure your right to access your savings earlier. Make sure you check the details of your pensions before you make changes to your retirement plan!”

You should also calculate your retirement income needs, based on your desired retirement lifestyle.

Whether you plan to gradually phase into retirement by reducing working hours or retire outright, the retirement lifestyle you want will affect the amount of income you need.

It is also essential to consider your assets when building a retirement plan.

Mike said: “Often, when you think about creating a retirement income, your focus is on your pension. However, other assets, such as savings, investments held outside of a pension, and property, may be useful, especially if you want to retire before the NMPA. 

“As your financial planner, we could work with you to create a long-term financial plan that brings together different assets to support you in reaching your retirement goals.”

Lastly, scheduling regular pension reviews can not only help you factor in your own changing circumstances and goals, but can also help adapt your retirement plans to changes in government policy.

Mike said: “Changes to the NMPA don’t automatically mean you need to update your retirement plan. However, being informed could offer peace of mind as you move towards the exciting milestone.

“Working with a financial planner could help you assess how you’ll create an income once you step back from work and identify potential gaps.

“If you’d like some help planning for this important stage in your life, please contact us to talk to one of our team about your retirement.”