Retirement options

Retirement options

Retirement ages

Normal retirement age

An individual's normal retirement age (sometimes referred to as default retirement age) is traditionally the age at which, under the rules of a pension scheme, a member can access their pension benefits in full (ie without reduction for early payment). Normal retirement age will often be 65.

While pension schemes can still use the concept of normal retirement age, since 6 April 2011, employers no longer have the unfettered right to dismiss employees on attaining age 65.

Normal minimum pension age and protected pension age

Normal minimum pension age is the earliest age at which members may take their benefits (other than ill-health benefits) as authorised member payments under a registered pension scheme. Normal minimum pension age is currently 55, having increased from 50 on 6 April 2010. It will further increase to 57 with effect from 6 April 2028.

Where members started to take their benefits after reaching the normal minimum pension age of 50 before 6 April 2010 but they were not yet aged 55 by that date, those benefits can still continue to be paid after 6 April 2010 as

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Pensions News

PPI research finds “Collective Drawdown” CDC could boost pensions by 75% vs traditional DC

The Pensions Policy Institute (PPI), in collaboration with King’s College London, has published a research report examining how Collective Defined Contribution (CDC) pensions could be adapted for the UK and finds that a redesigned model, known as Collective Drawdown, could deliver up to 75% higher retirement outcomes compared to a traditional Defined Contribution (DC) scheme followed by full annuitisation at retirement. In addition, research also shows that collective drawdown performs about 22% better than an optimised flex-then-fix strategy where the member begins with drawdown and gradually purchases annuities in stages.

WPC launches inquiry into the pre-pension income gap ahead of the State Pension age increase

The Work and Pensions Committee (WPC) has launched an inquiry into the transition to State Pension age to examine the pre-pension income gap and assess support available to those aged 60–66, as the State Pension age increases from 66 to 67 from April 2026. The Committee highlights that 22% of 60–64-year-olds lived in poverty in 2023/24—the joint poorest age group among working-age adults—often leaving work early due to ill health or caring responsibilities. The inquiry will investigate reasons for premature retirement, inequality, and the impact on pre-pensioner and pensioner poverty, and will explore potential mitigations such as early access to pensions, means-tested benefits, or employment support. Evidence submissions close on 19 December 2025.

FRC publishes report to support transition to UK Stewardship Code 2026

The Financial Reporting Council (FRC) has published a report titled 'Preparing for the UK Stewardship Code 2026: Applying insights from current reporting' to help signatories transition to the updated Code, which takes effect on 1 January 2026. The report provides practical insights and examples of effective reporting to assist asset owners, asset managers and service providers in adapting to the updated Code's streamlined reporting structure. The UK Stewardship Code 2026 introduces a two-part reporting model, requiring signatories to submit a Policy and Context Disclosure every four years, alongside an annual Activities and Outcomes Report that demonstrates the practical application of the Code's Principles. The report addresses topics such as engagement reporting, the selection and oversight of external managers, voting in listed equity and stewardship in non-public equity asset classes. To facilitate the transition, 2026 will operate as a transitional year, during which existing signatories will retain their status provided they submit their first report under the updated Code within their usual application window in 2026.

WPC seeks DWP clarity on independent arbiter role in pension surplus disputes

Law360: The Department for Work and Pensions (DWP) has been asked whether it is considering a formal arbitration body to navigate future disputes between employers and trustees over who benefits from an estimated £160bn in surplus pension funds in defined benefit (DB) schemes.