Earning Over Age Sixty-Five

When you reach retirement age you may not necessarily be ready to give up work. Many people are choosing to work longer as life expectancy increases and retirements are increasingly longer and thus more expensive to finance. The advantage of continuing to earn a salary whilst a pensioner is clear; employment keeps you active and ensures a regular income. Many people look forward to retirement and are determined to leave the working week behind. Bear in mind however that continuing to work does not mean that you must continue with the position or the hours that you were working prior to retirement. You may wish to work part-time when you have reached retirement age, or decide to work for a few more years full-time in a less demanding job.

It is not uncommon for people to feel redundant or frustrated when they have retired, and continuing to work part-time is a good way to bridge the gap between your working life and your retirement years. You may also wish to consider working after State Pension Age if you are worried that you have not yet saved enough to support yourself as a pensioner. Continuing to work may allow you to build up better benefits in your occupational pension scheme (see Occupational Pension Schemes), and will enable you to save more for the retirement years ahead. You do not have to pay National Insurance contributions once you are over State Pension Age, so you should see an improvement in your take-home pay. Your earnings will however continue to be subject to Income Tax.

For more information on this topic, see Pension schemes when earning over age sixty-five, Income Tax when earning over age sixty-five and PAYE Scheme.