He said: “The pensions minister himself said ‘scheme members should benefit from an efficient, competitive and transparent workplace pensions system.
"This will continue to underpin our approach to consolidation of small pots and member protection, including charges being controlled effectively.’ As such, the NMPA rule change presents challenges that will need addressed."
Greer believes there are two alternatives the government should consider in place of its current approach – either keep the NMPA at 55 or remove proposed transitional protections and move everyone to 57.
“A number of schemes would breathe a sigh of relief” should the NMPA be held at 55, Greer said.
“It would also prevent the unnecessary further complication of pensions – an industry that already suffers at the hands of difficult to understand rules and legislation.”
Greer added that it would “arguably be better” to move everyone to 57 and do away with any proposed transitional protections, should the government be intent on upping the age.
“This will make the change easier to understand and limit the unintended consequences, although thorough communication will be required for those it has the biggest direct impact on.”
Tom Higgins is a freelance reporter for FTAdviser
