Website of the UK government

Check your State Pension age and plan your money

The age you can claim your State Pension is increasing. If you haven’t checked your State Pension age recently, then you may want to now.

When deciding whether to work past State Pension age, you may find it useful to work out how much money you will have in later life.

• How much income will you have in retirement?

• Your future wallet - a tool to help you plan your money for later life

Consider your employment options

If you decide that you want to continue working, then you may want to think about flexible working options. Flexible working is a phrase that describes any working pattern adapted to suit your needs. This includes reducing your hours to give you more personal time.

• Who can request flexible working? (employment section)

You may decide that you want to look for a new job and do something different. Or you may decide you want to start working for yourself.

• Changing the way you work in later life

If you do not need the extra income, but want to stay active and involved, you could look at volunteering.

• Guide to volunteering for over 50s

Find out about the advantages of staying in work

If you decide to work past State Pension age, you’ll take home more money because:

• you don’t pay any National Insurance
• you are likely to pay less income tax

You will also be entitled to your State Pension on top of your earnings. However, if you decide to put off claiming your State Pension you may be able to claim a lump sum, or an increased State Pension, at a later date.

• Personal Allowance (money, tax and benefits section)

• State Pension deferral - taking up your State Pension later

Requesting to work past retirement age

The default retirement age is 65. This means that your employer has the right to retire you when you reach this age. The government intends to begin to remove the default retirement age from April 2011. This will mean that most people can work beyond age 65 if they wish. The details of this change are being worked on and more information will be published in November 2010.

At the moment, if you decide that you want to continue working after default retirement age, you must make a written request to your employer. You must make this request at least three months before the date you are due to retire.

• Requesting to work past retirement

Case study

When David got to State Pension age, he found he had some options:

Before State Pension age

David took home £413 per week after tax working a normal five day week.

After State Pension age

David decided to carry on working for a bit and also claim his State Pension of £191 a week. He found out he had two options:

• same hours, more money (this would mean £613 per week – his State Pension of £191 plus an increased take-home pay of £422 as he no longer has to make National Insurance contributions)
• fewer hours, same money (dropping to 24 hours a week would still mean £468 per week – an extra £55 a week)

David's circumstances are based on real-life situations.

More useful links

• What will your State Pension be worth when you retire?

• Guide to concessions and other help

• Caring for someone while working (caring for someone section)

Useful contacts

• Money, tax and benefits contacts