News
Tax Update (January 2010)
Normal minimum pension age to rise to 55 from April 2010
As part of the pension reforms announced by the government in
2003, the normal minimum pension age will rise from 50 to 55 from 6
April 2010. After that date, people will normally only be allowed
to start receiving their pension payments from an occupational or a
personal pension scheme when they are 55 or older. The exceptions
are where they have severe ill health problems or can start their
pensions at a lower age than is protected by the pension tax
law.
If you are aged between 50 and 55 and have already started
receiving pension payments, this change to the normal minimum
pension age will not affect those payments.
Flexible retirement
Under previous tax rules, people must leave employment in order
to access an employer's occupational pension.
As part of the 2003 reforms, the government has relaxed the old
tax rules to enable employers to offer their employees the option
of flexible retirement. This is because many people want to work
for longer or combine work and retirement in light of considerable
improvement in life expectancy over recent years.
People who are still fit and able as they approach the end of
their careers will be able to withdraw gradually from the labour
market, combining employment and pension income however they wish,
so long as their own pension scheme allows it.
For more information call the Tax Advice Service on 0845
634 7000.