What is the State Pension age? It is the earliest age you can receive your State Pension. Depending on when you were born, the state pension age can be up to 68. Since there are plans to increase the age further, it is important to keep up-to-date regarding State Pensions. You can calculate your State Pension age here.
Working Past State Pension age
Since there is no longer a default retirement age, employees can now work for as long as they wish and are able. Most people can continue to work past their State Pension age, which is usually between 61 and 68. However, an employer is allowed to define a retirement age if there is a reasonable explantion to do so.
If you wish to claim your State Pension later than the State Pension age, there are incentives in place to benefit you. If you do remain in employment past State Pension age, you should accumulate more money as you will be no longer required to pay National Insurance. However, part-time employment past State Pension age still counts as taxable income, thus you’ll still be charged the usual rate of income tax for your income bracket. You may be elligable for certain tax allowances to reduce your tax bill beyond State Pension age if you’re employed.
It is important to note that money earned after State Pension age may affect income-related benefits such as Pension Credit and Housing Benefit. For more information on working past State Pension age, contact us on 01392 875391.
For advice on when to retire and claiming your State Pension, talk to one of our experienced Chartered Accountants today by calling 01392 875391.