Flexible retirement

Flexible retirement allows you to take your pension benefits while you continue working. Whether you're able to take your pension flexibly and how this works will depend on the rules of your pension scheme, the rules may also allow you to continue saving into the scheme and receiving employer contributions at the same time too.

This may be a useful option if you've decided to reduce your working hours and therefore, need some extra income. Pensions remain taxable alongside any other income earned, so it's important to consider how you will be taxed before proceeding. Flexible retirement isn't an automatic right for all pensions schemes and can currently be taken from the age of 55 or over (60 in Jersey). This will change from 6th April 2028 when the earliest age that you can take your pension will increase from age 55 to 57.

If you have a protected minimum pension age which is lower than 55 (or 57 from 6th April 2028), we would recommend discussing your plans with your pension scheme provider.

• If you have the right to early retirement before the age of 55, you won't be able to take up flexible retirement unless you are over the age of 55.
• Any life assurance offered by your employer may be impacted by taking flexible retirement. You should check your employer's policy to understand any impact.
• Should you fall ill and must leave your employment due to your health, you pension scheme won't adjust your pension to take account of your health.
• Whether you can continue saving into your pension and receiving employer contributions is at an employer's discretion and subject to the rules of the scheme.

Check your pension scheme rules to understand your options and how to apply.