Your Money

I want to take early retirement. Can I claim my state pension?

The basic state pension, which is age 60 for women and 65 for men, and for women it's raising to age 65 in 2020, can never be taken before that date. The only possible exception is if you pay in additional contributions via the state earnings related pension scheme or the state's second pension scheme. It may be that you can get your hands on it early if you retire through your health.

How does a lump sum payment work?

When you have an occupational private pension scheme and retire, you can often take a portion of that as a lump sum. At the moment it's a 25% tax free lump sum, obviously it could change in the future, but it's quite a valuable way to get a nice sum when you retire, to really get on your way into a comfortable retirement.

Is a lump sum payment taxable?

Under current pension rules, you can take up to 25% of your pension as a tax free lump sum when you retire. So no, it's not taxable. It's really a good idea and again it sets you on your way when it's time to retire with a nice nest egg.