What is pension/retirement age?

In the run up to retirement, your pension and retirement ages become important as they will help you plan your retirement income. Let’s take a closer look.

What does it mean in terms of the State Pension?

Your State Pension age is set by the government and is the age at which you can start receiving an income. This is currently set at 66 for both men and women and is expected to rise in the coming years.

What does it mean in terms of my private pensions?

When you or your employer set up your private pension, a retirement age would have been set either automatically or by yourself. This is a projected age at which you are likely to retire, and you can change this at any time.

This doesn’t mean that you have to take your pension at this age. It simply helps your pension provider to manage your pension in the best way. The money in your pension is invested in the stock market, and different investments have a different level of risk attached to them. When retirement is a long way off, your money is likely to be placed in higher risk investments. When you are younger you can afford to take more risk because, even if there are dips in the market, you will still reap more reward in the longer term. However, the closer you are to retirement, the less appropriate high-risk investments become. So, as you approach your retirement age, your money will be moved into lower risk investments to secure your savings in preparation for retirement.

What if I don’t want to take my pension just yet?

If you reach State Pension age or the retirement age you agreed with your pension provider and you feel that you don’t need to receive an income just yet, you can defer your pension. This simply means pushing back the age at which you start receiving your pension. Doing so can increase the money you receive when you do start taking an income.

Can I take my pension early?

You can’t withdraw the State Pension until you reach State Pension age. However, you can start to withdraw your private pensions from the age of 55. This can be in the form of one-off lump sums or taking an income. It’s important to remember that releasing pension money early will leave you worse off in retirement. So, it’s a good idea to speak with a financial adviser before you withdraw your pension to make sure you are leaving your future self financially secure.

Share this

Thinking about your pension options?

We can help you to make the best possible decisions when it comes to your pension.

The details provided in this article are for general information only and are in no way deemed to be financial advice. All of the material is correct as of the publication date, but could be out-of-date by the time you read the article.
0800 009 3388
Mon-Fri 9am-5pm


Pension Access is a trading name of Harbour Rock Capital Limited which is registered in England & Wales as a Limited Company, No. 10290349. Authorised and regulated by the Financial Conduct Authority, No. 754580. Registered Offices: Affinity House, Beaufort Court, Sir Thomas Longley Road, Rochester, Kent, ME2 4FD. Telephone: 0800 009 3388. Email: pensionaccess@harbourrockcapital.co.uk
© 2024 Pension Access. All right reserved.
What's in your info pack?
Your FREE information pack contains all the information you need to make an informed decision on wheter or not taking tax free cash from your pension is right for you.
Get your Free Info Pack
Complete the form and we'll send you an information pack in the post
Note: We are unable to advise on the state pension or any pension you are already taking an income from.

    Get your free info pack

    Where should we send your info pack?

    Please complete your details below and we'll send your information pack in the next available post

    Find Your address

    Type in your postcode or start typing your address then select from the drop-down list

    Your address

    We'll post your information pack here

    Keeping in touch

    We'll send you updates by email or text message. One of our specialists may call, just in case you have any questions about your pension. We’re big believers in never bombarding people with calls.

    Safety PadlockYour information is safe with us. Our calls are recorded for regulatory, legal and training requirements. Please see our privacy notice for information on our data practices here


    Hands using calculator to calculate home equity amount