Early retirement, your pension and benefits

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Personal and workplace pensions

When you can take money from your pension pot will depend on your pension scheme’s rules, but it’s usually after you’re 55.

You may be able to take money out before this age if either:

  • you’re retiring early because of ill health
  • you had the right under the scheme you joined before 6 April 2006 to take your pension before you’re 55 – ask your pension provider if you’re not sure

Some companies offer to help you get money out of your pension before you’re 55. This could be an unauthorised payment. If it’s unauthorised, you pay up to 55% tax on it.

The pension pot that you build up will probably be smaller if you retire early, because it’s had less time to increase in value.

Taking your pension early because of ill health

You might be able to get higher payments if you need to take your pension early because of a health condition. Check with your provider.

If your life expectancy is less than a year

You may be able to take your whole pension pot as a tax-free lump sum if all of the following apply:

  • you’re expected to live less than a year because of serious illness
  • you’re under 75
  • your whole pension pot does not go above your lump sum and death benefit allowance

You’ll pay Income Tax on some or all of the lump sum if:

  • you’re over 75
  • it goes above your lump sum and death benefit allowance

Check with your pension provider. Some pension funds will keep at least 50% of your pension pot for your spouse or civil partner.

View a printable version of the whole guide

Part of Plan your retirement income: step by step

  1. Step 1 Check when you can retire

    1. Check what age you can get your State Pension
    2. Find out about working after you reach State Pension age
    3. You are currently viewing: Find out if you can retire early with your workplace or personal pension

  2. and Check how much pension you could get

    1. Find out how much State Pension you could get (your forecast)

    You may also be paying into a:

    1. Find out if you’ll pay tax on your pension
    2. Find contact details for a lost pension

  3. Step 2 Increase your pension

    You might be able to increase the amount you get if you delay your pension.

    1. Find out about delaying your pension

    You might be able to pay voluntary contributions to fill in gaps in your National Insurance record (such as, from when you were not working or claiming benefits).

    1. Check if you can pay voluntary National Insurance contributions

    For advice about increasing your workplace or private pension, speak to a financial adviser.

    1. Find a financial adviser through Unbiased

  4. Step 3 Check what other financial support you could get

    Check what financial help you could get if you:

    You can also get free bus travel if you:

  5. Step 4 Decide when to retire

    1. Get advice on planning your pension and deciding when to retire