Early Retirement and the State Pension
It is never possible to draw your State Pension before you have reached State Pension Age). There are no circumstances, however extreme, whereby this can be altered, even if you are dying. You are entitled to the Guarantee Credit part of Pension Credit once you are over sixty, and you may be entitled to some State Benefits. With no basic State Pension income however, you will have to plan ahead to ensure that you can support yourself using other savings or non-state pensions. Think twice about whether you can really afford early retirement. However, if you are currently living on Income Support (see State Benefits) you may find that the Guarantee Credit you are entitled to receive at sixty gives you more income, making early retirement a more viable option.
Once retired, you are not required to pay any more National Insurance contributions unless you begin working again. You can choose to make extra contributions if you have gaps on your National Insurance record, which will help you to qualify for the full pension when you reach State Pension Age. If you are a man over sixty years of age you may be entitled to Pension Credits if you are no longer paying National Insurance contributions. Although you cannot draw your pension if you retire before State Pension Age you can request a Pension Forecast (see Calculating Retirement Income) which will give you a good idea of the level of income you can expect to receive when you do reach retirement.
If you are unemployed before you reach State Pension Age you might be eligible to receive Jobseeker’s Allowance (see State Benefits), which will help you to cover your expenses. You are only entitled to this allowance however if you are actively seeking employment. If you are unemployed but do not want to work again, you will not be able to receive this benefit. If you have to retire early on health grounds, see the information in State Pension and Disability. There are different rules that apply if you wish to leave a non-state pension scheme earlier than originally anticipated. For guidance on leaving a non-state pension scheme early, see Early / Late Retirement and Non-State Pensions.
