P567ORACLE 567 Mon24 Feb C4 1729:24
1/6
When is retirement
not retirement?
Working after retirement sounds like a
contradiction in terms, but if you're
fit there's no reason why you shouldn't
supplement your income. Sue Gorska
looks at what you can earn before it
affects your pension.
One of the conditions for getting a
state retirement pension is that you
must be retired. This doesn't mean you
must give up work altogether. You can
be treated as retired if you earn less
than £75 a week, or, for example, you
work only occasionally. Put simply, the
job must be something you'd do to keep
busy and earn pocket money ─ it can't
be a full-time committment.
more follows >
Your Money ...560 Holidays ...580
P567ORACLE 567 Mon24 Feb C4 1713:11
2/6
When is retirement
not retirement?
The so-called earnings rule allows you
to earn up to £75 a week before your
basic state pension is affected. It
doesn't apply to occupational pensions
or graduated pensions. If you sometimes
earn more than this in one week, your
pension will be reduced for that week.
If you regularly earn over the £75
limit, your pension may be withdrawn.
Your pension will be reduced by 5p fgr
every 10p earned between £75 and £79.
You'll lose 5p for every complete 5p
above £79. If you earn £115.30 or more
you lose all your pension.
more follows >
Your Money ...560 Holidays ...580
P567ORACLE 567 Mon24 Feb C4 1711:04
3/6
When is retirement
not retirement?
You can deduct any expenses you incur
because of your work before the
earnings rule applies.
Allowable expenses include fares to and
from work, trade union subscriptions,
overalls and the cost of cleaning them.
Also included is the cost of making
reasonable provision for a dependent ─
child minding fees, for example.
Anything provided by your employer
counts as your earnings except fgr a
few specific perks ─ meals provided at
work, luncheon vouchers up to 15p a day
or a Christmas bonus of up to £10, for
example.
more follows >
Your Money ...560 Holidays ...580
P567ORACLE 567 Mon24 Feb C4 1714:12
4/6
When is retirement
not retirement?
If you do want to go on working but
don't meet one of the conditions that
lets you draw your pension too, you can
cancel your retirement and defer your
pension for up to 5 years. You get your
pension anyway, once you reach 70 (65
for a woman), whether you're working or
not.
You can earn more pension by deferring
it. If you did this today, your pension
would go up by about 7½% for each year
you don't retire. A pension deferred 5
full years (until 65 or 70 years of age
would be worth £52.66 for a single
person, £84.29 to a married couple.
more follows >
Your Money ...560 Holidays ...580
P567ORACLE 567 Mon24 Feb C4 1707:08
5/6
When is retirement
not retirement?
Earning after retirement could make you
liable for income tax. Because your
pension counts towards your taxable
income you may find you can earn only a
limited amount more before paying tax.
People aged 65 or over usually get a
higher personal allowance known as the
Age Allowance. A married man will only
start paying tax on his income if it's
over £4,255 a year, for example. But if
any earnings boost your income to more
than £8,800 a year, your age allowance
is reduced by £2 for every £3 of income
over this limit.
more follows >
Your Money ...560 Holidays ...580
P567ORACLE 567 Mon24 Feb C4 1722:25
6/6
When is retirement
not retirement?
There are employment agencies which
specialise in the over 60s. Buretire
(UK) Ltd, London, run by the Employment
Fellowship helps retired and disabled
people to find part-time work, while
Success After Sixty, London W1,
specialises in jobs for the over-60s in
London and the South East.
Retired Executive Action Clearing House
(REACH for short), based in London,
won't find you a paid job, but it will
help you find voluntary work on an
expenses-only basis.
more follows >
Your Money ...560 Holidays ...580