Admin Can I take a lump sum from my pension at 55?
Once you reach the age of 55 you’ll have the option of taking some or all of your pension out in cash, referred to as a lump sum. The first 25% of your pension can be withdrawn tax free, but you’ll need to pay tax on any further withdrawals. You could pay less tax if you don’t take all of your pension as a lump sum.
What age can you draw your pension?
55
The age at which you can access your private pensions is 55, and is expected to rise to 57 in 2028. The UK doesn’t have a default retirement age anymore, so you can choose when to retire.
What age can you retire and collect pension?
The qualifying age is currently 66 years old. It is scheduled to increase to 67 in 2023. The pension amount you receive will depend on: your income.
What happens if I take 25 of my pension at 55?
Take some of it as cash and leave the rest invested Taking money out of your pension is known as a drawdown. 25% of your pension pot can be withdrawn tax-free, but you’ll need to pay income tax on the rest. You can choose whether to withdraw the full tax-free part in one go or over time.
How old will I be when I get my pension UK?
State pension age increase from 67 to 68
| Date of birth | Likely impact of the proposals |
|---|---|
| Between 6 April 1970 and 5 April 1978 | Your state pension age is currently 67 – it will rise to between 67 years and 1 month and 68 years, depending on your date of birth |
| After 6 April 1978 | No change – your state pension age will be 68 |
What benefits do you get at 60?
Here are some brief details – please click one of the links for more information.
- Pension credits.
- Free prescriptions and Sight tests.
- Subsidised travel.
- Annual flu jab.
- The job seekers allowance.
- Special support grant.
- Student support grants.
- State Pension.
Can you retire at 61 years old?
The earliest you can start collecting retirement benefits is age 62. You can apply once you reach 61 years and 9 months of age. However, Social Security reduces your payment if you start collecting before your full retirement age, or FRA. (You can apply later than 70, but it doesn’t change your benefit.)