Knowing when you can retire is an important part of planning ahead – here’s what you should know
You can take your workplace defined contribution (DC) pension from age 55. You can take up to 25% tax free. With the rest you can buy an annuity, take the whole pot as a lump sum, or move it into what’s called a drawdown account. Taking the rest of your money out of your pension pot is subject to income tax. Depending on how much you take, you could be hit with a large tax bill.
The State Pension Age is on the rise - it’s 65 for men and will rise to 65 for women by November 2018. It’s going up to 66 for everyone by 2020 and then 67 by October 2028. Do you know what your State Pension age is?
The Basic State Pension is currently worth £119.30 a week from April 2016. You need 30 years’ National Insurance Contributions (NICs) to get the full amount. The £155.65 a week New State Pension is being introduced from April 2016. You will need 35 Years’ National Insurance Contributions to qualify for the full amount. But not everyone who is eligible will get it at first.
Find out more about when you can retire
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- 7 things you don’t think you’ll miss about work (but you probably will)
- Stay healthy, happy and active in retirement
- Welcome to retiresavvy
This article has been commissioned by retiresavvy and any opinions voiced are the author's own.