2028 Protection Explained: Key Facts for CII Exam Preparation
In this article, we look at 2028 protection, which is a form of transitional protection that will apply in 2028 when the normal minimum pension age increases to 57. This is particularly relevant to the CII J05 exam, where it has been specifically examined on multiple occasions previously, but could also easily come up as a question in R04. It may also be relevant to AF7.
This article is correct as at 26 August 2025.
Pension Legislation and Saver Protection: Why Retrospective Disadvantage is Avoided
With all the (thankfully unwarranted) speculation about a reduction of the pension tax-free cash allowance, many in the financial services sector lost sight of a key fact. For all of the myriad changes to pensions legislation over recent years, there has been one consistent factor. Those changes have consistently incorporated specific legislation to ensure that savers are not retrospectively disadvantaged.
Historical Overview: Lifetime Allowance and Minimum Pension Age Changes
This started with the introduction of the lifetime allowance and the minimum pension age in 2006, where primary and enhanced protection and protected tax-free cash were available. It then continued following the subsequent reductions to the lifetime allowance prior to its eventual abolition.
Early Retirement Protections and Unqualified Rights
The same thinking has consistently applied to the age from which benefits can be accessed. When the lifetime allowance was introduced in 2006, the government of the day also introduced the concept of the normal minimum pension age, which was set at 50. However, the legislation included a carve-out for members of certain occupations where early retirement was common and whose scheme provided an unqualified right to retire prior to the age of 50. This protection was repeated in 2010 when the normal minimum pension aged increased to 55.
2028 Pension Changes: State Pension and Minimum Pension Age
In 2028, the State Pension age will increase to 67. It is the intention of government that the minimum pension age will increase in line with the State Pension age, but ten years lower. Therefore, when State Pension age increases to 67, the minimum pension age will increase to 57.
Understanding 2028 Protection: Transitional Safeguards for Members
True to form, in order not to retrospectively disadvantage savers, the government has announced the introduction of ‘2028 protection’. This means that a scheme member whose scheme rules allow for retirement from the age of 55 may retain that right after the change.
Eligibility for 2028 Protection: Who Qualifies
To qualify for the protection, the member must have been a member of the scheme, or in the middle of a ‘substantive request’ to join, on or before 4 November 2021. The scheme must be one whose rules contained an ‘unqualified right’ as of 11 February 2021 to take benefits from an earlier age. An unqualified right means that they do not need to ask the permission of the trustees to do so.
The changes will not impact members who have a pre-existing right to take benefits at an age earlier than 55, who will still retain that right.
Retaining Protection During Pension Scheme Transfers
A member will be able to retain the right to take benefits from age 55 in the event of a transfer to another registered pension scheme under two scenarios:
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Block transfer – if two or more members transfer from the same scheme to the same receiving scheme at the same time, the protection will apply not only to the transferred benefits but also to existing and future rights in the new scheme.
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Individual transfer – if a single member transfers without satisfying the block transfer rules, protection only applies to the benefits transferred, not to any pre-existing or future rights in the receiving scheme.
Maintaining Protection During Scheme Wind-Ups and TUPE Transfers
In certain cases, protections can also be maintained during a scheme wind-up or where the member is transferred under TUPE regulations.
Protections may also be maintained where benefits are transferred as part of a scheme wind-up or under the Transfer of Undertakings (Protection of Employment) Regulations (TUPE).
Members Without Protection: Impact of the Minimum Pension Age Change
Members who do not meet the protection criteria and who reach age 55 after 6 April 2028 will be subject to the new minimum pension age of 57.
Practical Implications: Limited Impact but Exam Relevance
Given that the change is only an additional two years, the practical impact on most clients is likely to be limited. However, the changes have already been tested in J05 and, given that there are still two and a half years to go until they take place, are a good bet for a repeat outing at some point.
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