Retire At 50 In 2010

marker46

Hello does anyone know for sure about company pension schemes still letting you retire at 50 in 2010,i have been told our company still allows this but every website says this changes to 55 in 2010

MikeJones_2

Hi marker46

Until 5th April 2010, the current normal minimum pension age from a registered pension scheme is age 50.

On 6th April 2010, this rises to age 55 for everyone.

But remember that in terms of when you can draw your pension benefit depends upon the Rules of your pension scheme, which may set their minimum age higher than this.

There are still specific rules (from HMRC) that apply for ill-health. Some schemes will allow a member to start taking their pension benefits earlier if they become incapable of work due to ill health. The Scheme Rules will specify what circumstances this applies to.

A member of a pension scheme with a lower minimum pension age resulting from service before 6th April 2006, may be able to protect that right i.e. to continue to be able to draw benefits before age 50 (or before age 55 on or after 6th April 2010). If you have a lower minimum pension age you should contact your scheme administrators who will let you know whether your lower minimum pension age is protected.

One point to remember is that a scheme may have different retirement ages if there are different sections of the scheme (e.g. for Executives, Managers, Staff, Shop Floor etc). In these circumstances early payment may be different for each section of the scheme.

Finally, in respect of early payment the scheme may have different rules for active members than for preserved members.

If in doubt ask the scheme administrators or your HR Dept.

There is a specific section on HM Revenue & Custom's Pension Scheme Manual website (and it's for scheme members so is written in plain English for your ease of understanding):
RPSM08200000 - Member Pages: Pension age: Contents

I hope that helps.

Mike Jones

I work in the field of Pension Education and Pension Guidance in the UK. I am a current member of the Specialist Pensions Forum as well as being a Voluntary Adviser for The Pensions Advisory Service. I work with scheme members, employers, trustees, scheme administrators and advisers on most things to do with employer sponsored pension schemes. The views expressed by me in this thread are my personal opinions. You should seek professional advice from an appropriately experienced and qualified adviser.

marker46

THANKS MIKE,so i need to ask if my minimum age of 50 is protected,before these 2010 rules at work you could get your pension but only if the company wanted you to go,does that change anything just looked at them links ,i mite be wrong here but does the protected min age only apply if you could just retire at 50 without permision,hope this makes sence,

MikeJones_2

Hi marker46,

I'm afraid I can't be specific for you, if only because I don't know your particular scheme and your individual circumstances.

However, I would ask these questions:

1. What is my Normal Retirement Date?

2. What is the earliest age that I can draw my pension benefits without penalty/reduction?

3. What is my minimum pension age (i.e. what is the earliest age when I can take my pension benefits before my Normal Retirement Date)?

4. Is there a penalty/reduction that applies to my pension benefits if paid at my minimum pension age?

5. Is my minimum pension age 'protected'?

6. Will my minimum pension age change with effect from 6th April 2010, and if 'yes', to what?

I hope that you can see that these questions are designed to tease out the majority of situations, but there is no substitute for sitting down with your Pensions Manager or an IFA, telling them your situation and what you are hoping to achieve and asking for further guidance.

Mike Jones

I work in the field of Pension Education and Pension Guidance in the UK. I am a current member of the Specialist Pensions Forum as well as being a Voluntary Adviser for The Pensions Advisory Service. I work with scheme members, employers, trustees, scheme administrators and advisers on most things to do with employer sponsored pension schemes. The views expressed by me in this thread are my personal opinions. You should seek professional advice from an appropriately experienced and qualified adviser.

marker46

THANKS again mike,so if my firm says yes you can still take your pension at 50 in 2010 the goverment does not mind you doing this,

jonathon_hart

MikeJones wrote: »

A member of a pension scheme with a lower minimum pension age resulting from service before 6th April 2006, may be able to protect that right i.e. to continue to be able to draw benefits before age 50 (or before age 55 on or after 6th April 2010). If you have a lower minimum pension age you should contact your scheme administrators who will let you know whether your lower minimum pension age is protected.

As a quick check if you look at your contract of employment. If this gives a Normal Retirement Age of 50 then it will probably be protected, If it doesn't then it will almost certainly not be protected. Age 50 Normal Retirement Ages are not very common and often need special dispensation from the HMRC.

Edit to clarify this: This right must have been written into your contract of employment pre April 2006 (I think December 2005 was the actual cut off) and it cannot be added now and you cannot individually protect your right to retire at age 50. It is a very rare right and not many people will have it - but it does exist (I've administered a scheme with it in so know this first hand)

Thanks

Jonathon

MikeJones_2

marker46 wrote: »

THANKS again mike,so if my firm says yes you can still take your pension at 50 in 2010 the goverment does not mind you doing this,

No. My understanding is that with effect from 6th April 2010 the only circumstances that you will be able to draw pension benefits below age 55 will be:

1) Ill-health
2) Serious ill-health (terminally ill, with life expectancy less than 12 months)
3) Where you have a 'protected' pension age.

All 3 are permissible under HMRC rules which override your Scheme Rules.

So, for example, if your Scheme Rules currently say you can draw benefits at 50 and they pay you those benefits out after 5/4/2010 in any circumstance not in my list of 1-3 above, the scheme will be in breach of HMRC rules, for which there are consequencies.

Mike Jones

I work in the field of Pension Education and Pension Guidance in the UK. I am a current member of the Specialist Pensions Forum as well as being a Voluntary Adviser for The Pensions Advisory Service. I work with scheme members, employers, trustees, scheme administrators and advisers on most things to do with employer sponsored pension schemes. The views expressed by me in this thread are my personal opinions. You should seek professional advice from an appropriately experienced and qualified adviser.

joebob

I have an appointment with the company doctor on wednesday. There is a strong possibility he will tell me i cannot do my job anymore. I am 48 years old, is it possible to have my pension before I am 50 on grounds of ill health.?