A Difficult Age - Time Running Out!
19 January 2010
After 5 April 2010, the earliest age a member of a pension scheme can apply to retire and take benefits (apart from on the grounds of ill-health and in other very limited circumstances) is going up from age 50 to age 55. After 5 April 2010, beginning to pay benefits to anyone before they reach age 55 (except as described earlier) become unauthorised payments and will attract a tax charge.
This generally means that any applications to retire before age 55 must be granted and any lump sum benefits and pension put into payment before 6 April 2010, if a tax charge is to be avoided.
Any such applications must otherwise comply with the rules of the particular scheme, including any required consents from the employer and/or the trustees.
For more information, please contact:
Iain Talman, Colin Greig or June Crombie (0141 228 8000)
The information contained in this article is given for general information only, reflects the current law on the date of this article, and does not constitute legal advice on any specific matter