Pension Ages - minimum and maximum
- pension funds
Pension Fund prices, performance charts and financial tools to help with your research.
The minimum age at which pension benefits can be taken is 55.*
Ill health exception - a pension may be paid at any age, and, (if life expectancy is declared, by medical experts, to be less than one year) can be provided as a lump sum.
There is no maximum age for pensions to commence, but in practice age 75 should be viewed as a sensible maximum. (If no action is taken before age 75, then scope for flexibility in planning is reduced, plus tax charges may be incurred).
Lump sum payments made after age 75 are treated as unauthorised and subject to a tax charge.
* Prior to April 2006 some professions were granted a dispensation to retire early (eg some sports people and dancers). If you fit into such a category and accrued rights under a pension before 2006, it may be possible to protect your rights to retire early. See your Financial Adviser.
Last updated on
April 7, 2010
A personal pension or stakeholder pension plan is a long-term contract. It is not possible to surrender a pension for a cash sum.
Future changes in pension legislation may adversely affect the plan, or the benefits derived from it.
Your future benefits will depend on fund growth in the period up to retirement and prevailing annuity rates at retirement. For instance early retirement is likely to result in lower benefits, both because of the shorter period of growth and the higher cost of annuities for younger retirees.
The value of unit-linked pension funds is related to the markets in which they invest and thus will rise and fall in line with those markets. Past performance is not necessarily a guide to the future.
The benefits derived from a personal pension or stakeholder pension plan are in addition to any State pensions you may be entitled to. They may result in you becoming ineligible for State benefits such as the Minimum Income Guarantee/Pension Credit and Housing & Council Tax Benefits.
All pensions in payment are treated as earned (as distinct from investment) income and assessed for Income Tax.
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