Legislation in the UK will be introduced in the Finance Bill 2021-22 to provide a framework of protections and increase the normal minimum pension age (NMPA) from age 55 to 57 from 6 April 2028.
This measure would increase the NMPA, which is the minimum age at which most private pension savers can access their pensions without incurring an unauthorised payments tax charge. Unless they are retiring due to ill-health.
If this is passed this would impact New Zealand QROPS schemes because to retain their HMRC approved status they have to comply with UK pension rules.
Implications for New Zealand QROPS schemes
If you are already in a New Zealand QROPS scheme, which is covered by the HMRC rules around early withdrawal before age 55 prior to 4th November 2021, there is no change.
If you transferred your funds after 4 November 2021 then your New Zealand QROPS scheme (when the legislation is passed) will have a NMPA of 57 effective from 6th April 2028. This would also affect clients who switch from one QROPS provider to another. Essentially switching from one QROPS scheme to another would trigger the investing after the 4th November 2021 clause when the legislation is passed.