The Treaty of Rome was signed in 1957 and the E.E.C. was born on the 1st January 1958. It was the very same E.E.C. that put pressure on the U.K. to equalise the State Retirement Age and in 1995 the Government set the wheels in motion to increase the retirement age for women from 60 to 65 between 2010 and 2020. So in reality, we are not quite there yet.
In the meantime, the State Retirement Age is set to increase further – bear with us, as this is where it gets interesting.
After years and years of legislation to create a standardised retirement age, you could be forgiven for looking bemused when the Office For National Statistics confirms that over 1 million people beyond the age of 65 are still working. This represents 9.5% (almost 1 in 10) of the working population.
This would appear to be the beginning of a far more flexible approach to retirement. The days are gone when you came home on your last day with a carriage clock, only to realise you will never have to commute to work again.
You no longer have to stop work in order to receive your state pension (you did in 1948!), and you can take all or part of your pension benefits at any time from 55 onwards – again without having to stop work.
We are now entering a period where there is no longer a black and white line between your working life and your retirement. The margins have blurred and this now means that tax advice is inextricably linked with pensions advice in the pre and post retirement phase of life – especially now that the actual retirement date may not be so obvious.
Mantle Financial Planning provides an in-house tax service. We work closely with our colleagues to provide the best and most tax efficient solutions to those clients who choose to keep working whilst drawing state and/or other pension benefits. For further advice please, contact us >>