Your Quick Guide to United Kingdom Retirement Age

Working and living in the United Kingdom, it is important to also understand what it means to retire here. The UK retirement age could be different from that of your home country, and as an immigrant, it is important to understand your eligibility.

 

Changes Over the Years

The UK’s retirement age policy has changed over the years to meet the local demographic and economic needs. Changes in life expectancy and government policies have shaped the current retirement age regulations and schemes.

 

How Does the UK Determine Their Retirement Age?

The UK’s retirement age is based on two factors. The first is date of birth, and the second is gender. These will determine if you are eligible for the state pension benefits.

The State Pension age is gradually increasing based on the rising life expectancy. This move by the Government is to ensure that the pension system remains sustainable. Therefore, the current State Pension accessibility based on your year of birth is as follows:

• Before 6 April 1950 – Age 65 (men and women), anyone born after 6 April will gradually increase.
• Between 6 April 1950 and 5 April 1960 – the State Pension age gradually Increased to 66.
• Between 6 April 1960 and 5 April 1978 – State Pension age is gradually Increasing to 67. For those born after April 1978, the age will gradually rise to 68. Specific dates are not final yet.

 

What Does This Mean for Retirees?

If you plan to retire in the UK, it is essential to understand the implications of the retirement age and State Pension schemes. You may need to adjust your plans and finances accordingly since you will only be eligible for state pension benefits later on. It is important to plan and save accordingly for when that day comes.

Surviving on a state pension alone might not be enough. If it isn’t, then working for longer also means you have more time to explore possible sources of income once you’ve retired from your job. Savings, investments, and private pensions are some possible alternative income options to explore.

 

What Does A Later Retirement Age Mean for Employers?

From an employer’s perspective, they must consider adopting age-inclusive policies and practices. With an older workforce in the field for longer, options like training and flexible work arrangements might have to be embedded into the work culture to accommodate their needs.

 

Need Help?

3E Accounting United Kingdom can help you with every HR assistance required to run your business. On the other hand, we can also help with our immigration services. Contact us for more information.