Pension drawdown age guide
Here in the UK, an individual’s personal pension drawdown age will depend on several factors, including the type of scheme they used, their state of health and to a larger extent, legislation that governs all pension products.
This article should give you an idea of your pension drawdown options at different ages, and will cover:
- At what age can I take pension drawdown?
- Can I take pension drawdown before retirement?
- Pension drawdown age 50 and under
- Aged 55 – 60
- Aged 60 – 75
- Aged 75 and above
- Speak to a specialist advisor
At what age can I take pension drawdown?
Pension drawdown is usually available from the age of 55, as long as your scheme offers this facility. If this isn’t the case, you could consider switching to a plan that does include a drawdown feature – make an enquiry to speak with a pensions expert for more information.
Can I take pension drawdown before retirement?
The answer is often yes, as long as you have reached the age of 55 and are enrolled in a scheme that offers pension drawdown. Some people choose to move into part time work at 55 while taking pension contributions to make up for the drop in income.
Pension drawdown aged 50 – 55
It isn’t usually possible to take funds from a pension of any type before the age of 55, so taking funds from a drawdown pension at 50 is extremely rare. However, there can be exceptions in cases of early retirement and/or ill health. Take a look at the latest government guidelines here for more information on taking your pension early or make an enquiry and one of the experts we work with will go over all of your options with you.
Aged 55 – 60
The official minimum age for taking a private pension is 55 years in the UK, so from 55 you are entitled to access these savings under the flexibility rules introduced in 2015. 55 is also therefore the income drawdown minimum age, so you can benefit from pension drawdown if your scheme offers it, or transfer to one that does.
Income drawdown at 55 is a popular option in particular for those who want to take early retirement or move into part-time employment while benefiting from their savings. While pension drawdown is by no means guaranteed for life and taking any pension before 60 is considered to be early, those who opt for drawdown of pension at 55 will benefit from the fact that their pension pot continues to grow as funds remain invested.
Many people choose to take their pension between 60 and 65, which is usually before the state pension kicks in, depending on your year of birth. As is the case for anyone aged 55 or above with a drawdown pension, they will benefit from the flexibility of being able to take a tax free lump sums or set up a regular income with a tax free element added (UFPLS), and will have the additional peace of mind of knowing that remaining funds will remain invested for the future.
Pension drawdown aged 75 and older
If you’re fortunate enough to have enough to live on without dipping into your pension pot before you reach the age of 75, your savings will continue to grow tax free. However, when you reach 75 your pension pot will no longer benefit from the tax relief.
With this in mind, pension or income drawdown at age 75 is certainly possible as long as you are with the right scheme and provider, and there is no upper age limit on when you can move your funds into a drawdown pension and start benefiting from it.
Some providers and schemes do not allow savers to delay taking their pension as late as age 75 or above, so it’s important to check this detail in advance in case you need to switch.
Get access to expert advice
If there is anything else you want to know about drawdown pensions, the experts we work with will be more than happy to answer your questions. Give us a call on 0808 189 0463 or make an online enquiry and we’ll get right back to you.
We won’t charge a fee for this service, you’re under no obligation to take the advice and your credit rating will be unaffected. All you need to do is sit back and let us do the legwork, while we find the most suitable broker for you.