DEFAULT RETIREMENT AGE: This page explains the process for working while taking your pension.
Now that the United Kingdom has no official retirement age, how long can you work?
What are some advantages of working past your State Pension age?
There will be changes to taxation and National Insurance contributions.
You may have options for flexible or part-time working. Even so, remember that your discrimination rights still apply.
The ‘default retirement age‘ used to be 65 and it was a forced retirement age. But, it no longer exists in the United Kingdom.
As a rule, you may carry on working for as long as you want to – and are physically able to. Many older folks find advantages in flexible working arrangements or part-time work. But, employers have the right to reject this type of request.
Note: There is a Welsh language version ‘Gweithio ar ôl oedran Pensiwn y Wladwriaeth‘ that explains working past retirement age your rights.
Compulsory Retirement Age
There are some situations where employers can force their workers to retire at a certain age. This is better known as a ‘compulsory retirement age‘. But, there must be a valid reason for forcing an employee to retire. Some typical examples include:
- A job that requires certain physical abilities to complete the tasks. Working in the construction industry could fit this situation.
- A job that has an upper age limit set out in the list of employment laws of the United Kingdom. Some jobs in the fire service could fit this situation.
Unlawful Discriminatory Treatment
Discrimination laws also protect those who are working after State Pension age. For example, you do not need to give your date of birth if you apply for a new job. You can make a claim to an employment tribunal if you feel an employer has given you unlawful treatment.
Note: Your rights are protected from some types of prejudicial or unjust discrimination ‘protected characteristics’ in the United Kingdom.
Claiming a Pension while Working
As a rule, you can still claim your pension while you continue working, providing already reached:
- UK State Pension age (for those who claim the State Pension).
- The age set out by your pension provider (for those who claim a personal pension or a workplace pension).
National Insurance and Taxation
Working past State Pension age means you do not pay National Insurance contributions. Even so, you may need to pay Income Tax after State Pension age. It depends most on the amount of your total earnings.
Those who delay or defer taking the State Pension will get larger weekly payments when they take it.
Reducing how many hours you work can affect the amount you get from an occupational pension. Your employer will confirm if this applies to you. You should also check what will happen if you carry on working beyond the age that you can take it.