Flexible retirement meaning

HMRC figures released on 31 July 2024 reveal that 2.6 million individuals have to date taken a flexible pension payment, with 43% aged under 60 and 28% aged 64 or below. Just Group reported that nearly two-thirds of the £83bn drawn via flexible payments since pension freedom rules were introduced in 2015 has been taken by those under 65. Stephen Lowe, group communications director at the retirement savings firm, warned that savers should handle withdrawals carefully and with caution...

Pensions Schemes Newsletter for July 2025 In its July 2025 Pensions Schemes Newsletter, HMRC said it has issued refunds after processing 12,767 claims lodged between 1 April 2025 and 30 June 2025 by people overcharged under pension flexibility rules. Since the government introduced retirement saving freedoms in 2015, the cumulative amount repaid for pension overtaxation has climbed to more than £1.4bn. These freedoms permit pension scheme members aged 55 and above to take lump sums or draw flexible payments from their pension savings. However, because of a peculiarity in the tax calculation, many savers are initially charged more tax than they truly owe when they first access their pension pots...

The consultancy stated on 6 June 2024 that mid-sized pension schemes have fewer endgame routes than either larger or smaller peers. Hymans Robertson noted that retirement savings arrangements with assets exceeding £250m enjoy broad flexibility, from continuing to operate to releasing surplus to secure partial or full insurance. By contrast, the recently floated public sector consolidator may suit schemes with less than £10m in assets, the firm added. The consolidator’s aim is to bring together a series of smaller, solvent pension schemes within a single fund. However, the 2,600-plus defined benefit plans that sit between these thresholds encounter particular obstacles, the consultancy said, especially where trustees are seeking to transfer their liabilities to an insurer...

THIS PRACTICE NOTE APPLIES TO MONEY PURCHASE ARRANGEMENTS FROM 6 APRIL 2015 From 6 April 2015, new pension flexibilities expanded the retirement choices for DC members and others with ‘flexible benefits’ (in essence, money purchase and/or cash balance entitlements). As part of those reforms, drawdown became more broadly accessible. For background on the changes implemented on 6 April 2015, see Practice Note: Pension freedoms—an introduction [Archived]. This Practice Note concentrates on the legal framework for drawdown arrangements set up on and after 6 April 2015. It also addresses how pre-April 2015 drawdown is treated from that date. For the rules governing drawdown before 6 April 2015, see Practice Note: Drawdown between 6 April 2011 and 5 April 2015 [Archived]. What is drawdown? The label ‘drawdown pension’ (often called ‘flexible income’) replaced ‘unsecured pension’ and ‘alternatively secured pension’ used up to 5 April 2011. Drawdown pension describes the method of paying benefits that allows members to set their own yearly income from a pension arrangement...

A collective defined contribution (CDC) scheme is a type of defined ambition arrangement. What is defined ambition? At its core is the principle of risk sharing, meaning the pension scheme’s risks are not shouldered wholly, or mainly, by either the employer or the members. A defined ambition pension combines aspects seen in traditional defined benefit (DB) schemes with elements typical of traditional defined contribution (DC) schemes. According to the Department of Work and Pensions (DWP), the purpose of a defined ambition pension is to provide members with greater certainty than a pure DC pension, while aiming for less cost volatility for employers than current DB pensions. In a traditional DB arrangement, the employer typically carries the full burden of risks linked to investment performance, inflation and how long members live. There has been a marked move away from traditional DB owing to factors including economic pressures and the treatment of DB liabilities in company accounts...

What is the National Health Service Pension Scheme? The NHSPS is an unfunded public service occupational pension that delivers salary‑related, defined benefit (DB) retirement provision for health service staff. The reformed NHSPS (often termed the ‘2015 Scheme’) began on 1 April 2015 as a career average revalued earnings (CARE) arrangement. New starters since that date have joined this scheme, which is the focus of this Practice Note. The legacy NHSPS (the ‘1995/2008 Scheme’) consists of two separate final salary sections—the 1995 Section and the 2008 Section—both closed to future accrual, while preserving a final salary link within that scheme. For further details, see Practice Note: The legacy National Health Service Pension Scheme. There are distinct schemes in Scotland and Northern Ireland, which are not covered by this Practice Note. When the reformed NHSPS opened, the government acted to close the 1995 and 2008 Sections to future accrual, subject to: ...

1 Introduction 1.1 This policy explains the Company’s stance on employee retirement. It demonstrates the Company’s commitment to an age-diverse workforce and to tackling age bias in retirement. The Company values every colleague, including the expertise and experience of older staff. 1.2 This forms part of the Company’s pledge to advance equality and prevent unlawful discrimination. When applying the retirement procedure, the Company will not discriminate, directly or indirectly, on grounds of age, nor on grounds of disability, gender reassignment, marital or civil partner status, pregnancy or maternity, race, religion or belief, sex or sexual orientation. 1.3 The Company considers it appropriate to operate a fixed retirement age [ for [ set out details of relevant roles ] ]. This decision and the set retirement age will be reviewed periodically. 1.4 This policy explains the steps the Company will take as an employee nears the fixed retirement age, and outlines what is required of the employee...

1 Introduction 1.1 This policy sets out the Company’s approach to employee retirement within the organisation. It seeks to demonstrate the Company’s commitment to nurturing age diversity across its workforce and addressing age discrimination at retirement. The Company values the contribution of all employees, including the knowledge and experience of older employees. 1.2 This policy is part of the Company’s broader strategy to promote equal opportunities and to prevent unlawful discrimination. In applying the retirement procedure described in this policy, the Company will not discriminate, directly or indirectly, on the grounds of age, nor on the grounds of disability, gender reassignment, marital or civil partner status, pregnancy or maternity, race, religion or belief, sex or sexual orientation. 1.3 The Company believes employees should be free to continue working for as long as they wish, and that choosing to retire voluntarily should be an individual and personal decision for each employee. 1.4 The Company does not operate a fixed retirement age. However, the Company may, from time...