Retirement options

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Retirement ages

Normal retirement age

An individual's normal retirement age (sometimes referred to as default retirement age) is traditionally the age at which, under the rules of a pension scheme, a member can access their pension benefits in full (ie without reduction for early payment). Normal retirement age will often be 65.

While pension schemes can still use the concept of normal retirement age, since 6 April 2011, employers no longer have the unfettered right to dismiss employees on attaining age 65.

Normal minimum pension age and protected pension age

Normal minimum pension age is the earliest age at which members may take their benefits (other than ill-health benefits) as authorised member payments under a registered pension scheme. Normal minimum pension age is currently 55, having increased from 50 on 6 April 2010. It will further increase to 57 with effect from 6 April 2028.

Where members started to take their benefits after reaching the normal minimum pension age of 50 before 6 April 2010 but they were not yet aged 55 by that date, those benefits can still continue to be paid after 6 April 2010 as

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Latest Pensions News

PDP survey finds most pension providers ready for connection to dashboard ecosystem

The Pensions Dashboards Programme (PDP) has published a statement reaffirming the government's commitment to delivering pensions dashboards and sharing survey insights from a sample of FCA-regulated pension providers.  The 'Pensions Dashboards Readiness Survey',  undertaken by Ipsos between October and November 2024 on 130 FCA-regulated pension providers, indicates that more than 90% of providers intended to connect to the dashboards ecosystem before or by their ‘connect by’ dates as set out in the Department for Work and Pensions (DWP) guidance of March 2024. Also, more than 8 in 10 of respondents said all their data used for matching people to their pensions on dashboards was held digitally, while 85% of respondents reported that they were very or completely confident in their ability to meet the connection requirements while also maintaining their digital readiness. The survey is meant to be viewed as a ‘snapshot’ of dashboard readiness at the end of 2024, approximately 6 months ahead of the first connection date set out in the DWP guidance. Although some providers may face initial challenges in meeting the voluntary deadlines, the PDP notes that regulators have emphasised a flexible approach that avoids punitive measures, instead aiming to ensure that all providers eventually connect by 31 October 2026, thereby supporting improved retirement planning for individuals.

Police injury benefits: consultation outcome on 12-Month rule compatibility with statutory obligations published

The Home Office has published the consultation outcome on the subject of the 12-month rule in regulation 12 of the Police (Injury Benefit) Regulations 2006, SI 2006/932. Regulation 11 provides for the payment of injury awards for police officers who, as a result of injury received in the course of duty, have been permanently disabled and are unable to continue in the role. An injury award consists of a pension and a gratuity. Regulation 12 provides a significant additional gratuity for police officers who become totally and permanently disabled within 12 months of an injury. The additional gratuity is five times the annual value of the officer’s pensionable pay. The consultation, which ran between 12 May 2021 and 7 July 2021, examined the 12-month rule's compatibility with the Equality Act 2010, focusing on its impact on mental health injuries compared to physical injuries. Most respondents felt the 12-month rule was inconsistent with the Equality Act and did not adequately address progressive mental health conditions. However, there was no consensus among representative organisations, and the data collected was inconclusive. The Home Office therefore intends to gather more focused data and evidence through an engagement exercise with stakeholders and medical experts before considering any changes to regulation 12. However, if sufficient evidence and data support an amendment to regulation 12, the Home Office will consult further on any proposed changes.

Scheme did not have duty of care regarding member’s individual tax advice (Dr D, CAS-70911-G6X6)

Pensions analysis: In the determination of Dr D, CAS-70911-G6X6, the Pensions Ombudsman partially upheld a complaint by a member who incurred a large tax charge after withdrawing his entire pension benefits at age 75. As the member approached age 75, he failed to act on the scheme’s recommended options or to take tax advice and his funds were automatically switched to a cash fund at age 75. He then withdrew his entire benefits, resulting in the tax charge. The Ombudsman found that the scheme was not responsible for the tax consequences of the member's actions and so was not under a duty of care to advise the member on the tax consequences of withdrawing his entire pension at that stage. Martin Scott of gunnercooke LLP looks at the decision.

Lack of justifiable reason for trustee failure to reach unanimous consent on pension transfer (Mr N, CAS-49148-R5W6)

Pensions analysis: In the determination of Mr N (CAS-49148-R5W6), the Pensions Ombudsman has upheld a complaint about an incorrectly calculated transfer value which involved the underpayment of Mr N’s share of funds to another scheme. The trustees had a joint responsibility to ensure that the correct benefits were paid. The Ombudsman directed the trustees to rectify the situation by authorising the payment of the underpaid amount, together with interest, despite the repeated failure on the part of the trustees to reach the unanimous consent required to do so under the scheme’s rules. Martin Scott of gunnercooke LLP looks at the decision.

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