Can I withdraw my state pension? I'm 61 years old.

TightMike

Asking on behalf of my 61 year old uncle. Today he was telling me he received a letter in the post telling him he couldn't start using his pension until he's 67. I asked him, when did you get the letter? He said, oh it was a while back. I told him, from April 2015 at the age of 55 you can withdraw 25% of your pension tax free, then if you want to withdraw the rest, it will be taxed as income. It's the first time he had heard of this. He lives out on his own without a computer so I told him I'd find out a bit more.

Is this the state pension?

What happens when he hits 67? I'd assume if he withdrew it all before then, then he'd have nothing left.

How can he find out how much he has? I asked him if he knew and he said he has no idea.

Are there any government numbers he can call to find out more? Citizens Advice or something.

Thanks very much for any replies!

comeandgo

You can only withdraw from some private pensions, not state pensions. 67 sounds right age for his state pension.

dunstonh

I told him, from April 2015 at the age of 55 you can withdraw 25% of your pension tax free, then if you want to withdraw the rest, it will be taxed as income.

That is correct with personal pensions, SIPPs and stakeholder pensions (and some other types of personally invested pensions). However, it does not apply to the state pension and some types of occupational pension.

Age 67 sounds like state pension. There is nothing to withdraw with a state pension as it paid weekly and is just like any other state benefits.

he can request a state pension forecast online. It will come back in the form of a weekly amount payable.

dasherman

He will get his state pension some time between 65 & 66 depending on exactly when he was born. Find out more here: https://www.gov.uk/calculate-state-pension

coyrls

Although if he is 61, the latest his state pension age could be is 66. See https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/310231/spa-timetable.pdf

atush

dasherman wrote: »

He will get his state pension some time between 65 & 66 depending on exactly when he was born. Find out more here: https://www.gov.uk/calculate-state-pension

Exactly.

the min I saw he was 61 ALREADY he would not have to wait til 67

atush

coyrls wrote: »

Although if he is 61, the latest his state pension age could be is 66. See https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/310231/spa-timetable.pdf

But he should not get a letter saying 67?

atush

And, as he is 61. Has he never ever had a pension with his work? Anytime, anywhere? Worth looking into.

Then, is he still working? If so, if he didn't take his pension, but deferred it, he would get a 10%+ uplift in his pension amount for each full year deferred.

xylophone

he would get a 10%+ uplift in his pension amount for each full year deferred.

No because he would be deferring new state pension.

https://www.gov.uk/new-state-pension/eligibility

"You’ll need to defer for at least 9 weeks - your State Pension will increase by 1% for every 9 weeks you put off claiming. This works out at just under 5.8% for every full year you put off claiming."

atush

Very true, thanks.