Part of retirement planning is estimating how big your pension pot will need to be, and that depends in part on when you expect to retire. But the minimum age at which you can access your pensions varies based on the type of pension you’re talking about and, in some cases, the rules of your particular scheme.
In this article, we explore the minimum pension age for all pension types so you can plan ahead with clarity.
When can I start claiming my State Pension?
Your State Pension age depends entirely on your date of birth, and the thresholds involved are changing.
| Your date of birth | When you can start claiming your State Pension |
|---|---|
| Before 6 April 1960 | The day you turn 66 |
| 6 April 1960 to 5 April 1977 | Between 66 and 67* |
| 6 April 1977 to 5 April 1978 | Between 67 and 68* |
| After 5 April 1978 | The day you turn 68 |
Need a more accurate answer? Use the government’s State Pension age checker to find the exact day you can begin receiving your State Pension.
The State Pension age is currently under review, so changes may develop before you reach the threshold yourself. That’s why it’s important to use a checker like the one above to ensure your information is up-to-date for planning purposes.
It’s also vital to understand that the State Pension isn’t paid automatically – you need to claim it or you won’t receive your first payment when expected. You should receive an invitation letter around four months before you’re eligible to claim as a reminder.
When can I access my private pension?
Private and workplace pensions work to a different timetable, which varies depending on whether you have a defined contribution pension or a defined benefit plan, as well as the rules of your scheme.
If you have a defined contribution pension – which includes self-invested personal pensions (SIPPs), other personal pensions and the majority of workplace schemes – the normal minimum pension age is:
- Born before 6 April 1973 – 55
- Born after 5 April 1973 – 57.
Less commonly, some older schemes will come with a protected pension age – essentially allowing you to access your funds earlier than is standard. It’s worth checking your paperwork in case this applies to you.
Defined benefit schemes – also known as final salary plans – have their own set retirement ages, so you’ll need to check paperwork to find yours. Usually, you’ll need to be around 60 or 65.
Think that’s too late? Many schemes will allow you to access your retirement pot earlier, but typically your monthly income will be reduced to compensate for the longer payout period.
There are some very limited circumstances that could allow you to withdraw your pension earlier, such as certain cases of ill health, but most people will have to wait until reaching the minimum age.
Important! Any firm offering to unlock your pension early should be treated with caution. Unauthorised withdrawals can trigger tax charges of up to 55%, and you might risk losing your retirement income, as pension liberation is a common type of scam.
When can I take a lump sum from my pension?
You can’t withdraw a lump sum from the State Pension, but it’s usually possible for both defined contribution and defined benefit pensions. Fortunately, there’s no separate threshold – you can take a lump sum at the same time you become eligible to withdraw.
For defined contribution pensions, you can choose to take a lump sum whenever you want after you’ve reached the normal minimum pension age. This means you could take multiple lump sums, rather than being restricted to a single lump sum at your first withdrawal.
Can I delay taking my pension and continue working?
Yes, and there is nothing stopping you doing both at once.
With the State Pension, there is no longer a ‘default retirement age’ of 65. This means you’re not forced to either take your pension or stop work at any age – you can continue for as long as you’re willing and able.
Deferring your State Pension increases what you eventually receive. Under the new State Pension, deferral adds around 1% for every nine weeks you delay, roughly 5.8% a year, provided you defer for at least nine weeks. Whether that’s worthwhile depends largely on your tax position, since a higher State Pension alongside earnings could push you into a higher rate band.
You don’t have to take your private pension at the minimum age either:
- For defined contribution pensions: your money stays invested and value may grow or fall. Annuities purchased later in life may offer a higher guaranteed income.
- For defined benefit pensions: when you choose to take your pension, you’ll likely either get a higher regular income or receive a lump sum of the backdated payments you didn’t claim.
If you’re still contributing to your pension, you can continue to receive tax relief on those contributions until the age of 75, giving your pot the chance to grow even further, subject to the usual limits including your relevant UK earnings and annual allowance. Contributions can still be made after age 75, but they don’t qualify for tax relief.
Taking your pension at retirement age is by no means compulsory, and it can often open the door to a higher income when you do choose to claim. Whether you intend to claim immediately or defer your pension, it’s important to know when your eligibility begins.
A pensions expert financial adviser can help you to understand the rules of your pension pots so you can make the best decision when the time comes. For free, impartial advice over the age of 50, Pension Wise, part of MoneyHelper, can help.