Early retirement, your pension and benefits

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1. State Pension

The earliest you can get your State Pension is when you reach your State Pension age. You바카라 사이트檒l have to wait to claim your State Pension if you retire before you reach that age.

The amount you바카라 사이트檒l get

The amount you바카라 사이트檒l get depends on your National Insurance record and when you reach State Pension age.

You바카라 사이트檒l claim basic State Pension and Additional State Pension if you reached State Pension age before 6 April 2016.

You바카라 사이트檒l claim the new State Pension if you reach State Pension age on or after 6 April 2016.

2. Personal and workplace pensions

When you can take money from your pension pot will depend on your pension scheme바카라 사이트檚 rules, but it바카라 사이트檚 usually after you바카라 사이트檙e 55.

You may be able to take money out before this age if either:

  • you바카라 사이트檙e retiring early because of ill health
  • you had the right under the scheme you joined before 6 April 2006 to take your pension before you바카라 사이트檙e 55 바카라 사이트� ask your pension provider if you바카라 사이트檙e not sure

Some companies offer to help you get money out of your pension before you바카라 사이트檙e 55. This could be an unauthorised payment. If it바카라 사이트檚 unauthorised, you pay up to 55% tax on it.

The pension pot that you build up will probably be smaller if you retire early, because it바카라 사이트檚 had less time to increase in value.

Taking your pension early because of ill health

You might be able to get higher payments if you need to take your pension early because of a health condition. Check with your provider.

If your life expectancy is less than a year

You may be able to take your whole pension pot as a tax-free lump sum if all of the following apply:

  • you바카라 사이트檙e expected to live less than a year because of serious illness
  • you바카라 사이트檙e under 75
  • your whole pension pot does not go above your lump sum and death benefit allowance

You바카라 사이트檒l pay Income Tax on some or all of the lump sum if:

Check with your pension provider. Some pension funds will keep at least 50% of your pension pot for your spouse or civil partner.

3. Benefits

The amount of money you get from any income-related benefits could be affected if you take your pension early, such as money you get from:

  • Housing Benefit
  • Income Support
  • income-based Jobseeker바카라 사이트檚 Allowance
  • income-related Employment and Support Allowance
  • Pension Credit
  • Universal Credit

Benefits if you retire early because of ill health

If you retire early because of ill health you may be entitled to other benefits. Use a benefits calculator to check.

Get help

If you want to know more about how taking early retirement can affect your benefits, you can get help from: