We’re accepting Protected Pension Ages on transfers - here’s what it might mean for you

If you have a Protected Pension Age (PPA) of 55 or 56 attached to a pension transfer from another scheme, PensionBee will be able to administer this for customers in due course.

A PPA can allow certain individuals to access the eligible portion of their pension benefits earlier than the standard Normal Minimum Pension Age (NMPA), subject to specific rules and conditions. 

Find out what’s changing, why, and what it might mean for you.

You may have a Protected Pension Age on a transfer from a previous provider

In most circumstances, you can’t access a defined contribution (or ‘DC’) pension before the NMPA. This is currently 55, set to rise to 57 from April 2028. That’s the earliest you’ll be able to access your PensionBee pension, as governed by our scheme rules.

However, some pension schemes give you a PPA that allows you to access your pension at 55 or 56, even after the NMPA increases to 57. This is due to the way their trust deed and rules were written, giving members a right to take benefits from age 55, or in some cases 56, rather than referencing the NMPA.

Previously, we were unable to administer a PPA attached to pensions transferred into PensionBee, because the PensionBee scheme rules state that you must reach the NMPA before drawing your savings. So the earliest you’d have been able to withdraw from your pot would’ve been when you reached the NMPA.

But in response to customer demand, we’ve changed this approach. If you’ve transferred pension savings from a scheme with a PPA (age 55 or 56) and we’ve been correctly informed, you’ll be able to access that element of your savings in line with the earlier age, even if this is ahead of the NMPA.

For example, imagine that you have a PPA of 55 attached to a pension with another provider which you transfer to PensionBee. You’ll continue to be able to access this element of your savings from 55, even after the NMPA rises to 57 from 2028.

While your PPA will give you the right to access these funds early, we recommend customers think very carefully before doing so. Accessing your pension earlier will result in a smaller overall pot and less time for investments to potentially grow, which could impact your standard of living later in retirement. 

The NMPA remains in place for your PensionBee pension, including other transfers and contributions made

You’ll be able to access any eligible savings you transfer in when you reach your PPA (age 55 or 56). Remember, the PPA amount you'll be able to access at the protected age is subject to normal market fluctuations, and may be higher or lower than the amount originally transferred in. It’ll reflect your plan’s performance, any movements between funds, and fees charged.

However, the PensionBee scheme rules state that you must reach the NMPA before drawing your savings. So, when it comes to the rest of your PensionBee savings, including any other transfers (without a PPA) or any contributions made into your PensionBee pot, you’ll still need to wait until you reach the NMPA (55, rising to 57 from 2028) to access them.

We remain committed to supporting the increase in the NMPA as we believe it helps ensure pension savers have enough retirement income to meet their needs, can maintain their savings for longer, and can avoid financial hardship prior to the increase in State Pension age to 67 in 2028.

However, we also want to provide our customers with flexibility and the ability to make decisions regarding accessing funds where a PPA exists.

This approach allows us to do that.

Need more information?

For free, impartial guidance on your options, we strongly encourage you to visit MoneyHelper.

To find out if your plan has a PPA, please contact your current pension provider.

At PensionBee, we respect your right to transfer your pension to another provider whenever you choose. If you believe you have a PPA from a past transfer into PensionBee, and want to ensure this feature is passed along to your new provider, please let us know when you request your transfer. Upon request, we'll review our records and pass this information on to them for you. 

For information on your pension transfer from another scheme that has a PPA, or any other questions, please get in touch with your personal account manager ('BeeKeeper') via email, phone or live chat.

Risk warning

As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. This information should not be regarded as financial advice.