There is now no set retirement age for anyone in employment. Legislation enables you to continue working well past the state retirement age. This gives you the flexibility to draw benefits from a pension scheme while remaining in work.
Normally, the minimum age when benefits can be taken is 55, which for most people is at least 10 years before the state retirement age.
The retirement benefits you have accumulated with your previous employer will only provide a very modest pension.You have, however, the right to obtain up to 25% of the fund as a tax-free lump sum, with the balance providing an income normally through the purchase of an annuity.
It pays to shop around to obtain the best value for an annuity, as insurance companies offer very different rates. If you smoke, have in the past or currently experience poor health, are significantly overweight or drink heavily, you may benefit from an enhanced annuity to reflect the potential reduction in your life expectancy compared to the national average.
This could provide a significant boost to the income normally available from an annuity.
Once the annuity is purchased, an income will be provided for the remainder of your life, whether you are in work or not.