When can a member retire?
Employees can no longer be forced by employers to retire at a certain age except in specific circumstances such as poor job performance.
However, the date from when a member can receive benefits from the pension scheme, depends on the scheme rules.
The pension scheme rules state the Normal Retirement Age (NRA) for the scheme.
For members of defined contribution schemes, they usually have the option to select a target retirement age (TRA).
Can a member retire early?
The earliest age from which a member can retire, or access their benefits, is currently age 55.
If a member wants to retire early from an occupational pension scheme, they will normally require permission from their employer if they are an active member or if they are a deferred member, from the trustees or the employer, or both. No consent is required for members of Personal Pension Plans.
In earlier modules, we have looked at financial, health and lifestyle factors that a member needs to take account when considering early retirement.
If a member is sick, they may be able to take their benefits before age 55 on ill-health grounds. Also, certain occupations have allowable retirement ages before age 55 for particular reasons e.g. professional sports people or those in hazardous occupations.
These special Normal Retirement Ages are approved by HMRC.
