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Five things to consider if you plan to work past retirement age

Sponsored feature | Siobhan Cordery, Chartered financial planner Gibbs Denley Financial Planning

Siobhan Cordery, Gibbs Denley Financial Services. Picture: Keith Heppell (53638179)
Siobhan Cordery, Gibbs Denley Financial Services. Picture: Keith Heppell (53638179)

Figures suggest that an increasing number of people plan to work past the traditional state pension age. If it’s something you’re thinking about, there are a number of things you should also consider regarding personal pension planning.

What are your long-term plans?

While you may not be ready to retire yet, setting out a long-term plan is still important. Having an idea of when you want to retire and the lifestyle you want can ensure you stay on the right track.

Will you access your pension while working?

You don’t have to give up work to be able to access your pension. Usually, you can access your personal pension from the age of 55, rising to 57 in 2028. You can earn a salary and withdraw an income from your pension if you wish to, depending on the type of pension.

Will you continue to contribute to your pension?

If you’re hoping to boost your retirement income, you may still want to contribute to your pension. However, if you start taking an income from your pension, you may trigger the Money Purchase Annual Allowance (MPAA), which will reduce the amount you can tax-efficiently save to £4,000.

Will you claim your state pension?

If you’re working past the state pension age, you may want to defer claiming your state pension. As well as a higher state pension when you do claim it, deferring your state pension if you’re still working can reduce your income tax liability.

Can you create the work-life balance you want?

Pensioners have far more freedom today to create the lifestyle they want. You may want to reduce your working hours and supplement the lower salary by taking an income from your pension, for example. If you’re not sure what your options are, we’re here to help you.

Contact our team to find out more about how we could help you. Call 01954 233650 or email financial@gibbsdenley.co.uk.

This article is for information only, and does not constitute financial advice.

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