Retiring in the UK, what you need to know

If you are reading this article, it’s because retirement is getting closer or you are just thinking about it and you want to know when it will be the time to stop working and receive your pension. Usually, employees stop working as soon as they reach the retirement age, which is around 66 years old. You might find yourself wondering: “Will I get my money straight away?“ or “How long after my 66th birthday will I get my State Pension?“ If it is not clear enough, you need to know that is not possible to obtain your State pension earlier than the retirement age. However, you may be allowed to withdraw money before the retirement age if you have a personal or workplace pension. Most likely, you would need to face a penalty cost, though. However, you need to be careful because your pension would need to last longer since you would start spending it earlier. So, it is essential to think carefully about how you manage your finances to prevent running out of money sooner than expected.

The retirement age

There is no such thing as a set age at which people must retire in the UK. The law was changed back in 2011 in order to outlaw the practice of companies to make its workers retire at 65. Nowadays, you can choose to work quite as much as you desire. Women may typically retire at age 63.6, while males can do so at age 64.7. Nevertheless, you can begin to get your pension money based on specific regulations or you can decide to defer your State pension.

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Workplace and personal pensions

Are you an employee of a company and, consequently, you have a workplace pension? That aside, have you started a private pension plan? In these cases, the terms and conditions of the pensions’ plans will then dictate when you can start receiving your money. To find out whether or not there are penalties for receiving your pension before the usual retirement age, check with your provider. If you are the recipient of a workplace pension, you might necessitate the consent of your current or previous employer in order to withdraw funds prior to the retirement age.

State pension

In order to receive the pension from the UK government you should have applied at the proper time in order to get it. Would you like to know what is the amount you are going to receive? This number depends directly on the person’s work and the National Insurance history. Basically, it considers contributions you have provided up to that moment during the time you are employed and the ones that are credited when you are not working and paid. If there is any gap in your career related to these contributions, it can be solved by a payment you can make. As stated before, you are entitled to receive the State Pension payments as soon as you reach the retirement age and you claim the pension.

Early retirement, factors to take into account

Traditionally, you have to wait until the age of 66 to be able to start receiving your pension. There are some uncommon exceptions, though. For instance, when you are ill. There are several occupations that allow professional athletes to retire earlier. On the other hand, there are several pensions that have a defined pension age that is inferior to 55 (mainly those that were founded before April 6, 2006). It is best to get in touch with your provider as soon as you can if you think this applies to you and you are interested in an early retirement. In this case there are few other things to bear in mind. Examine the conditions of your scheme and, in the first place, ask your pension provider for guidance if you think you might be entitled to take your pension early for a cause other than medical conditions.

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