April 2010

jmac_5

Please bare with me!
I have read recently that from April 2010 no one will be able to retire untill they are 55 years old.
In my present scheme I can retire at 50 if I have paid my contributions.
I will be 50 in March 2013 and have paid all of my contributions by August 2013 hence able to retire then.
Can the goalposts be moved, making me work another 5 years paying another 5 years contribution with no pensionable benefit?

Pal

I have read recently that from April 2010 no one will be able to retire untill they are 55 years old.

I haven't seen that date yet but it may well be true.

In my present scheme I can retire at 50 if I have paid my contributions. I will be 50 in March 2013 and have paid all of my contributions by August 2013 hence able to retire then.

While the rules of many schemes allow you to retire at 50, your pension is always significantly lower as a result, and very few people can afford to retire that early.  I suggest you get an early retirement estimate from your pension provider.  Final salary pensions are generally reduced by about 70% at age 50 compared to age 65, and you also miss out on the last 15 years (between 50 and 65) of extra service and salary increases that boost your pension even further.

Annuity rates for someone in a money purchase scheme at age 50 do not bear thinking about.

Can the goalposts be moved, making me work another 5 years paying another 5 years contribution with no pensionable benefit?

Yes, they can move the goalposts.

You would still get an extra benefit from paying the extra 5 years contributions as the reduction from retiring earlier would be significantly less, and in the money purchase scheme, your extra contributions all go towards buying you a higher pension.

Unless you are very wealthy or your pension scheme is very very generous, you are not going to be able to retire at age 50 anyway.  I suggest you speak to your pension administrator or company who can confirm the numbers involved for you.

Please bare with me!

No nudity on the pensions board please.  

dunstonh

When the age is raised to 55 from April 2006, there is a short period where those above a certain age can still retire between 50 and 55. Although i havent checked 2010 would sound about right as from memory it was about age 45ish upwards.

isasmurf

I have read recently that from April 2010 no one will be able to retire untill they are 55 years old.

You can retire whenever you like - it's just the age that you can get your grubby mits on your money that is going to increase.

The proposal was from 6th April 2010, or earlier if your pension scheme so chooses, the age which you can claim your pension will rise from 50 to 55.  Some people with pre-existing rights will still be able to draw benefits from their pension at 50.  I believe this is no longer a proposal and is now legislation in the Finance Bill 2004.

dunstonh

I was about to post asking what had changed about it going to age 55 from 2006 but with a few years allowance for those close to age 50 and it commencing in 2010 but then realised it was the same thing just worded differently. ::)

jmac, you are lucky to be in a scheme where you have already hit the maximum allowed level by age 50. You are in the minority there as most people fail to hit the maximum by age 65 let alone 50.