Reaching State Pension age doesn’t mean you have to give up work. You can continue working and still receive your State Pension. Find out about your options and the advantages of working longer.
Retirement age
Default retirement age (formerly 65) was abolished - most people can now work for as long as they want.
Retirement age is not the same as State Pension age which can be between 61 and 68, depending when someone was born and if they’re male or female. Anyone can continue working past State Pension age.
- Age discrimination
- Calculate your State Pension age
Choosing when to retire
Retirement age is when an employee chooses to retire. Most businesses don’t set an age that their employees must retire at. If an employee chooses to work longer they can’t be discriminated against. However, some employers can set an age that employees must retire at if they can clearly justify it.
It’s an employee’s responsibility to discuss when and how to retire with their employer. This could include phasing retirement by working flexibly. Members of occupational pension schemes need to discuss with their pension scheme managers what impact a change in working hours or income might have on the pension, whether the scheme supports phased retirement or working beyond the scheme’s normal pension age.
Employers may or may not be able to agree requests. If an employee is unhappy with their employer’s decision, they can challenge this at an employment tribunal.
Retirement is a form of resignation - employers and employees must follow the right procedures for this.
Consider your employment options
If you decide that you want to continue working, you may want to think about flexible working options. Flexible working describes any working pattern adapted to suit your needs. This includes reducing your hours to give you more personal time.
You may decide that you want to look for a new job and do something different. Or you may decide you want to start working for yourself. If you do not need the extra income, but want to stay active and involved, you could look at volunteering.
Working and deferring your State Pension
There are incentives for you to take your State Pension later, instead of when you reach State Pension age ('deferring' your claim).
Putting off your claim may be especially suitable if you want to work after you reach State Pension age. It will help make you less dependent on the State Pension. But even if you're not working you can still choose to get more by putting off your claim.
For more information, read the following section:
The advantages of staying in work
If you decide to work longer, you're likely to take home more money because you don't pay any National Insurance when you're over State Pension age.
- National Insurance after State Pension age
Tax on part-time work and other income
Income you receive from part-time work in retirement counts as 'taxable income'– along with income from your State Pension, personal or company (occupational) pensions and from certain taxable benefits.
If your overall taxable income is more than your tax-free allowances you'll be taxed at the usual Income Tax rates on the difference. However you might earn more before paying tax. You don't pay any National Insurance when you're over State Pension age. For people who reached 65 before 6 April 2014, there is a higher tax-free personal allowance. You may also qualify for other allowances that can reduce your tax bill.
National Minimum Wage after you retire
You are still entitled to the National Minimum Wage for any paid work you do after you reach State Pension age.
- The National Minimum Wage
Continuing in work and your workplace pension
If you reached the age at which you can start claiming your workplace pension scheme, you don't need to stop work in order to claim. You have a number of options, including taking some of the pension you've built up while continuing to work for the same employer.
- Understanding and qualifying for new State Pension
Effect of paid work on your current benefits
Money you earn after State Pension age may affect income-related benefits such as Pension Credit and Housing Benefit.
Staff at the Northern Ireland Pension Centre can tell you how income from paid work will affect your Pension Credit and other benefits. They can also advise you on how putting off claiming your State Pension might affect your benefit entitlement.
If you're looking for work through your local Social Security/Jobs & Benefits office, staff there should be able to tell you how extra income from working may affect your benefits.
- Northern Ireland Pension Centre
- Jobs and Benefits office
More useful links
- Early retirement - effect on your pension
- Planning your retirement
- Contacting 08 and 03 numbers
FAQs
How much can you earn and still get benefits? later, then your full retirement age for retirement insurance benefits is 67. If you work, and are at full retirement age or older, you may keep all of your benefits, no matter how much you earn.
Why is working past retirement age good? ›
Results. Overall, individuals who continue to work even though they could retire tend to be wealthier, healthier, and males compared to individuals who are retired full-time. Further, there are more older workers who have partners and are co-habitants than retirees.
What percentage of 67 year olds are still working? ›
Yet they're in lockstep with a national trend — older Americans are working longer, into their 60s and even their 70s and beyond. Among Americans 65 and older, 19 percent were still working last year, which is almost a twofold increase from the late 1980s.
What incentives and benefits are there for working to or past the age of 70? ›
Employee Benefits
Among them: employer-paid life insurance and the employer contributions to your 401(k). Another biggie is health insurance, which can be cheaper than Medicare and provide more comprehensive coverage.
How much money can you make after full retirement age? ›
After the year in which you hit full retirement age, there is no limit on what you can earn while collecting Social Security retirement benefits.
How much money can you make a year after full retirement age? ›
The earnings limit increases (to $56,520 in 2023) for the calendar year in which you'll reach full retirement age. Starting in the month you hit your full retirement age, there is no longer an earnings limit. Your benefits will no longer be reduced regardless of how much income you have.
What if you choose to work beyond the age of 67? ›
If you choose to work beyond your full retirement age, you have two options: You can work and get full retirement benefits no matter how much you earn. You can delay getting retirement benefits and earn credits that increase your benefit amount.
Is it better to retire early or keep working? ›
It depends on your lifestyle and income. A good place to start is by assuming you'll need about 75% of your current salary each year in retirement to live the same lifestyle as you have today. Then think about you and your family's medical history and longevity to estimate your potential life expectancy.
What is the most beneficial age to retire? ›
67-70 – During this age range, your Social Security benefit, if you haven't already taken it, will increase by 8% for each year you delay taking it until you turn 70. So, if your benefit will be, say, $2,500/month if you start at your full retirement age, it would be more than $3,300/month if you can wait.
Is 70 too old to work? ›
Some older Americans are choosing to stay in their jobs or find new challenges that will keep them engaged. It's not uncommon for baby boomers to continue to work well into their 60s, 70s or even 80s.
More Americans are now working past 75 than ever. It's a shift that comes as the oldest baby boomers near their 80s, and better health care enables many older adults to extend their working lives.
How many 75 year olds are still working? ›
The 75-and-older workforce
Workers ages 75 and older are the fastest-growing age group in the workforce, more than quadrupling in size since 1964. Some 9% of adults ages 75 and older are employed today, about twice the share who were working in 1987 (4%).
What happens to Social Security if you work past 70? ›
Working past age 70 (or any time past your full retirement age, in fact) won't affect your benefits.
At what age do you get 100% of your Social Security? ›
The full retirement age is 66 if you were born from 1943 to 1954. The full retirement age increases gradually if you were born from 1955 to 1960 until it reaches 67. For anyone born 1960 or later, full retirement benefits are payable at age 67.
How much does Social Security increase if you work past 70? ›
You can receive benefits even if you still work. Waiting beyond age 70 will not increase your benefits. You can claim your retirement benefits now. Because you are age 70 or older, you will receive no additional benefit increases if you continue to delay claiming them.
Does working after full retirement age increase Social Security benefits? ›
If you also continue to work, you will be able to receive your full retirement benefits and any increase resulting from your additional earnings when we recalculate your benefits. Once you reach full retirement age, your earnings do not affect your benefit amount.
Is it worth it to work after retirement? ›
Covering essential expenses.
Continuing to work after retiring can help you pay for essential expenses such as housing, food, utilities and health care without using retirement savings. This could enable you to invest some of your savings more aggressively and could allow more “lifestyle” spending.
At what age is Social Security no longer taxed? ›
Social Security income can be taxable no matter how old you are. It all depends on whether your total combined income exceeds a certain level set for your filing status. You may have heard that Social Security income is not taxed after age 70; this is false.
How much can a 70 year old earn without paying taxes? ›
For retirees 65 and older, here's when you can stop filing taxes: Single retirees who earn less than $14,250. Married retirees filing jointly, who earn less than $26,450 if one spouse is 65 or older or who earn less than $27,800 if both spouses are age 65 or older. Married retirees filing separately who earn less than ...
