Early Retirement and the Non-State Pension

You are only entitled to begin receiving your State Pension once you have reached State Pension Age, currently set at age sixty for women and age sixty-five for men. You can begin drawing your non-state pension much earlier however; legally the minimum age to begin drawing a non-state pension is age fifty, set to increase to age fifty-five from 2010 onwards. If you wish, you can begin drawing your pension whilst you continue to work; drawing a pension does not require you to be retired. You may also choose to begin drawing your pension early if you are suddenly unemployed, if your financial situation changes and you need more money, or if you develop an illness or disability that prevents you from working or is likely to cause an early death. Individual pension schemes may have individual rules or recommendations regarding when their members are allowed to begin drawing their pension. You are currently allowed to draw your pension from age fifty, but this does not mean that your scheme will not charge you for choosing to retire early, especially if you had signed a contract that stipulated you would leave your money invested for a longer period of time. If you wish to take early retirement and begin drawing your pension, see Drawing a pension early, Early retirement due to illness or disability, and Early retirement due to occupation. Contact your pension scheme administrator for advice and information and consider consulting an independent financial advisor for assistance.