Pensions and retirement
Help your employees receive the appropriate state pension or workplace pension to which they are entitled.
When employees retire, make sure they receive any workplace pension(s) that they are due.
When employees reach their state pension age, they will need to make a claim for the state pension or consider the option to defer it.
State pension
Currently, the state pension age for men and women is 66 years old. This will increase to 67 years old between 2026 and 2028. Under current law, the state pension age is due to increase to 68 years old between 2044 and 2046. Following a recent review, the government has announced plans to bring this timetable forward. Proposed changes to the state pension age would increase it to age 68 years old between 2037 and 2039 - it would require approval by Parliament before that proposal is agreed.
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Claiming state pension
It would be helpful to confirm that they have received a claim pack from The Northern Ireland Pension Centre, which will normally write to invite a claim around four months before a person reaches state pension age. A claim pack will be unavailable prior to the four-month period.
They will not get their state pension automatically and have to claim it. They should get a letter no later than two months before they reach state pension age, telling them what to do. If they have not received an invitation letter, but are within three months of reaching their state pension age, they can still make a claim. State pension can be claimed online, by telephone, or by post. The quickest way to get their state pension is to apply online.
There's a different way to claim state pension from abroad, including the Channel Islands.
If your employee hasn't received a claim pack or wants more information on the state pension, including how to defer it, they should contact The Pension Service. .
Workplace pensions
If you run a workplace scheme and your employee is a member of it, write to the trustees or managers of the scheme to let them know their retirement date. The trustees or managers will then:
- work out what the employee will be entitled to on retirement
- write to the employee shortly before retirement with details of any tax-free lump sum that they may be entitled to
- provide details of the amount of pension payable and the date at which the first payment is to be made
You will need to provide final earnings and contribution information to the scheme so that there is no delay in processing your employee's retirement from the scheme.
If your scheme is a money purchase arrangement run by a pension provider, eg an insurance company, the employee should be advised that they have the right to buy an annuity from a provider other than the one running the pension scheme. This is an alternative to receiving a pension from your scheme.
The options for money purchase funds and provider duties have changed. Individuals now have flexible options for using their pension pot, in addition to the option to select an annuity. Individuals should be advised that they may be able to transfer to a different provider if your current scheme doesn't offer their preferred option. Even if your scheme offers the option they want, they should always shop around to ensure that they are making the most of their money.
Pensions advice and guidance
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If any employee thinks they may have lost track of an old pension from a previous workplace, they may find it helpful to contact the .
Your employees may also benefit from regulated financial advice. Read MoneyHelper's guidance on and use their , or use the Personal Finance Society's tool to .
Providing employees with tax-free pension advice
You may wish to consider providing this advice as an employee benefit. An Income Tax exemption is available to cover the first 拢500 worth of relevant pension advice provided to an employee. For further details see .
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