Late retirement - working beyond age 65 | Tyne & Wear Pension Fund

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Late retirement - working beyond age 65

If you decide to carry on working after age 65 you will continue to pay into the Scheme and build up further benefits. You can receive your pension when you retire or when you reach the eve of your 75th birthday, whichever comes first. Also, if you retire at or after age 65 you can, if you wish, defer drawing your pension but you must draw it before the eve of your 75^th birthday.

If you work beyond age 65 your pension will be paid at an increased rate. The pension is increased by 0.014% - and the tax free lump sum (if payable) increased by 0.007% - for each day after your 65th birthday but before your actual retirement date. An example is shown below.

example

Late retirement - working beyond age 65
a member who retires late and the period after their 65^th birthday to retirement is 200 days would have their benefits increased as follows:
Member's benefits before late retirement additions:
Pension	£8,500.00 pa
Tax free lump sum	£18,250.00

Late retirement increases are calculated as:
Pension	£ 8,500.00 x 200 x 0.014%	= £238.00 pa
Tax free lump sum	£18,250.00 x 200 x 0.007%	= £255.50

The member's increased benefits are:
Pension	£ 8,500.00 + £238.00	= £8,738.00 pa
Tax free lump sum	£18,250.00 + £255.50	= £18,505.50