If you are dreaming of giving up work at an early age, then think again unless you are sure you will have other income besides a pension.
Although most of us are slaving way hoping the day we retire is, the government keeps moving the goal posts further away.
State pension age is due to move to 68 years old by 2037 with several stops in between now and then.
Here’s a quick guide to the key dates when you can retire with the state pension:
- October 2018: The date men and women can start drawing their state pension equalises at 65 years old. For decades, women could pick up their pension from the age of 60, while men had to wait to 65.
- October 2020: The state pension age rises to 66
- The state pension age will keep rising between 2026 and 2028 to 67 and is expected to reach 68 years old by 2038.
Checking your state pension age
Further increases are planned to 70 and 72 years old, but no decision has been made about the dates although the government has pledged to give 10 year’s notice to allow people to plan their retirement finances.
The state pension age is the same for expats.
Anyone reaching their state pension age before April 6, 2016, receives the old weekly state pension, while those hitting
If you are unsure about your state pension age, you can check the date on an online tool provided by the Department of Work and Pensions.
If you have a workplace pension, your employer will have set you retirement date in the contract.
Early access to pension cash
If you work in the public sector or civil service, this is likely to be 60 or 65 years old.
Personal savers and some workplace schemes allow early access to pension cash before retirement through pension freedoms.
From 55 years old, savers can take some or all their cash without retiring, although income tax is due once the 25% tax-free lump sum is taken.
Expats with a UK personal pension have the same drawdown rights as UK residents. In some cases, Qualifying Recognised Overseas Pension Scheme (QROPS) providers offer the same pension freedoms to expats.