When it comes to planning for your future, understanding the ins and outs of the UK pension scheme is crucial. A pension scheme is a way to save money for your retirement, ensuring that you will have a stable income when you stop working. With the right knowledge and preparation, you can navigate the complexities of the system and make informed decisions about your financial future.
A UK pension scheme operates on the principle of regular contributions throughout your working life. These contributions can come from various sources, including your employer and yourself. The money is then invested, allowing it to grow over time. When you reach retirement age, you will start to receive regular payments from your pension fund, providing you with a reliable income during your golden years.
It is important to note that there are different types of pension schemes in the UK, each with its own set of rules and benefits. The most common types include workplace pensions, personal pensions, and state pensions. Workplace pensions are provided by your employer, while personal pensions are set up by individuals. State pensions, on the other hand, are funded by the government and are available to everyone who meets certain eligibility criteria.
Understanding the UK pension scheme also involves being aware of the tax implications. Contributions to a pension scheme are typically tax-free, meaning you can save money on your taxes while building up your retirement fund. However, when you start receiving payments from your pension, they are subject to income tax. It is important to consult with a financial advisor or tax specialist to ensure that you are maximizing your pension benefits in a tax-efficient manner.
Types of UK Pension Schemes
Within the UK pension system, there are several different types of pension schemes available to individuals. These schemes differ in their structure and the way they are funded. Here’s an overview of some of the most common types of UK pension schemes:
| Type of Pension Scheme | Description |
|---|---|
| State Pension | The State Pension is a government-provided pension scheme that provides a regular income to individuals who have reached the State Pension age. The amount of State Pension you receive depends on your National Insurance record and the number of qualifying years you have accumulated. |
| Defined Benefit Pension Scheme | Also known as final salary schemes, defined benefit pension schemes guarantee a certain level of income in retirement based on factors such as salary and years of service. The employer is responsible for funding these schemes, and the amount of pension you receive is usually calculated as a percentage of your final salary. |
| Defined Contribution Pension Scheme | Defined contribution pension schemes, also known as money purchase schemes, are based on the amount of money you and/or your employer contribute to the scheme. The value of your pension fund depends on the performance of your investments, and the income you receive in retirement is not guaranteed. |
| Occupational Pension Scheme | Occupational pension schemes are set up by employers for their employees. These schemes can be either defined benefit or defined contribution schemes, and they aim to provide employees with additional retirement income on top of the State Pension. |
| Personal Pension Scheme | Personal pension schemes are individual, private pension arrangements that individuals can set up themselves. These schemes are typically defined contribution schemes, and individuals choose how much they want to contribute and how their contributions are invested. |
It’s important to understand the different types of pension schemes available in the UK in order to make informed decisions about your retirement savings. Each scheme has its own advantages and considerations, so it’s wise to seek professional advice to determine which pension scheme is best suited to your needs and circumstances.
State Pension in the UK
The State Pension in the UK is a regular payment made by the government to eligible individuals who have reached the State Pension age. It is a key component of the overall UK pension system and provides a valuable source of income for retired individuals.
To qualify for the State Pension in the UK, you typically need to have made National Insurance contributions throughout your working life. The amount of State Pension you receive is based on your National Insurance record and the number of qualifying years you have accumulated.
The current State Pension age in the UK is gradually increasing, with plans to reach 68 for both men and women by 2037. It is important to check the official government website or speak to a financial advisor to determine your specific State Pension age.
Once you reach the State Pension age, you have the option to claim your State Pension. The amount you receive will depend on your National Insurance record, with a minimum number of qualifying years required to receive the full State Pension amount. If you have fewer than the minimum number of qualifying years, you may receive a reduced amount.
The State Pension in the UK is typically paid every four weeks and can be an important source of income during retirement. However, it is important to note that the State Pension is unlikely to cover all your living expenses, and it is recommended to have additional private pension savings or investments to supplement your retirement income.
- To qualify for the State Pension, you must have reached the State Pension age and have made National Insurance contributions.
- The amount of State Pension you receive is based on your National Insurance record and the number of qualifying years you have accumulated.
- The State Pension age is gradually increasing and is set to reach 68 for both men and women by 2037.
- You can claim your State Pension once you reach the State Pension age.
- The State Pension is typically paid every four weeks.
Overall, the State Pension in the UK is an important part of the pension system and provides financial support to individuals in their retirement years. It is important to keep track of your National Insurance contributions and plan accordingly to ensure a comfortable retirement.
Occupational Pension Schemes
In the UK, occupational pension schemes are a type of retirement plan that is offered by employers to their employees. These schemes are designed to provide employees with a source of income in retirement, in addition to the state pension.
Types of Occupational Pension Schemes
There are two main types of occupational pension schemes in the UK: Defined Benefit (DB) schemes and Defined Contribution (DC) schemes.
A Defined Benefit scheme promises a specific amount of income to the employee upon retirement. The amount of income is usually based on the employee’s salary and the number of years they have been a member of the scheme. This type of scheme is also known as a final salary scheme.
A Defined Contribution scheme, on the other hand, does not promise a specific amount of income upon retirement. Instead, both the employer and the employee contribute to a pension fund, which is then invested. The amount of income the employee receives in retirement depends on how the investments perform.
Benefits of Occupational Pension Schemes
There are several benefits to participating in an occupational pension scheme. Firstly, contributions to the scheme are typically made through automatic payroll deductions, making it easy for employees to save for retirement.
In addition, many employers match a percentage of their employees’ contributions, effectively boosting the employee’s retirement savings. This is known as employer matching.
Furthermore, contributions to occupational pension schemes are typically tax-deductible, meaning that employees receive a tax benefit for saving for retirement.
Regulations and Protections
Occupational pension schemes in the UK are regulated by the Pensions Regulator, which ensures that employers meet their obligations to employees and protect their pension savings.
Employees also enjoy legal protections with regards to their occupational pension schemes. For example, there are rules in place to prevent employers from reducing the value of benefits that employees have already earned.
| Defined Benefit Scheme | Defined Contribution Scheme |
|---|---|
| Promise specific amount of income upon retirement. | Amount of income depends on investment performance. |
| Usually based on salary and years of membership. | Contributions are invested in pension fund. |
| Pension payments are guaranteed. | Savings can be subject to market fluctuations. |
Overall, occupational pension schemes provide a valuable benefit to employees, helping them to save for retirement and secure a stable source of income in their later years.
Defined Benefit Pension Schemes
In the UK, a defined benefit pension scheme is a type of retirement plan where the benefits are based on a formula using factors such as salary and years of service. This means that the amount of retirement income you will receive is predetermined and guaranteed by the scheme.
Unlike other types of pension schemes, such as defined contribution schemes where the amount of retirement income is dependent on how much you contribute and the performance of your investments, with a defined benefit scheme, your employer is responsible for ensuring that you receive the promised benefits.
Your employer will make regular contributions to the scheme throughout your working career, building up a fund that will be used to pay your pension benefits. Once you reach the retirement age specified in the scheme, you will start receiving a regular income for the rest of your life.
The amount of pension you will receive from a defined benefit scheme is usually calculated using a specific formula, which takes into account factors such as your final salary, the number of years you have been a member of the scheme, and an accrual rate.
One major advantage of defined benefit pension schemes is that they provide a guaranteed and stable source of retirement income. Unlike defined contribution schemes, where the size of your pension pot is subject to market fluctuations, a defined benefit scheme offers a fixed income that is not affected by investment performance.
However, it’s worth noting that defined benefit pension schemes have become less common in the UK, as they can be expensive for employers to maintain. Many companies have replaced their defined benefit schemes with defined contribution schemes, which place more responsibility on the individual to save and manage their retirement funds.
If you are lucky enough to be a member of a defined benefit scheme, it is important to understand the scheme rules and requirements to ensure you receive the full benefits you are entitled to.
Defined Contribution Pension Schemes
UK pension schemes can be classified into two main types: defined contribution pension schemes and defined benefit pension schemes. In this section, we will focus on defined contribution pension schemes.
A defined contribution pension scheme is a type of UK pension scheme where the benefits you receive at retirement depend on the contributions you and your employer make, as well as the investment performance of the pension fund. In other words, the value of your pension fund is not guaranteed, and will vary depending on how much you and your employer contribute and how well the investments perform.
With a defined contribution pension scheme, you have more flexibility and control over your pension savings compared to a defined benefit pension scheme. You have the option to choose how much you and your employer contribute, as well as how to invest your pension fund. You can typically choose from a range of investment options, such as stocks, bonds, and mutual funds.
Upon retirement, you can use the accumulated pension fund to provide yourself with a regular income. There are different ways to access your pension savings, including purchasing an annuity, which provides a guaranteed income for life, or using the fund to draw income through an income drawdown arrangement.
It’s important to regularly review and monitor your defined contribution pension scheme to ensure that it is on track to meet your retirement goals. You should periodically assess the performance of your investments and consider making any necessary adjustments to your contribution levels or investment strategy.
Overall, defined contribution pension schemes offer individuals more flexibility and control over their pension savings compared to defined benefit pension schemes. However, they also come with more risk and responsibility, as the value of the pension fund is not guaranteed and will depend on various factors.
Personal Pension Schemes
In the United Kingdom, individuals who are not part of an employer-sponsored pension plan can contribute to a Personal Pension Scheme. These schemes are designed to provide people with a way to save for retirement and can be set up independently or through a financial advisor.
Personal Pension Schemes offer several benefits for individuals looking to save for retirement. They provide flexibility in terms of contributions, allowing individuals to contribute as much or as little as they wish, within certain limits set by the UK government. Contributions made to a Personal Pension Scheme can also benefit from tax relief, meaning that individuals effectively receive a top-up on their contributions from the government.
Types of Personal Pension Schemes
There are several types of Personal Pension Schemes available in the UK, including:
| 1. Stakeholder Pension | A low-cost pension option with capped charges and flexible contributions. |
| 2. Self-Invested Personal Pension (SIPP) | A pension scheme that allows individuals to choose and manage their own investments. |
| 3. Small Self-Administered Scheme (SSAS) | A pension scheme designed for small businesses, allowing employers and employees to contribute. |
Accessing Personal Pension Savings
Once an individual reaches the age of 55, they have several options for accessing their Personal Pension savings. They can choose to take a tax-free lump sum, typically up to 25% of their pension pot, as well as take a regular income from the remaining balance. Alternatively, they can choose to leave their pension pot invested and access it as needed in the future.
It is important for individuals to carefully consider their options and seek financial advice before making any decisions regarding their Personal Pension Scheme.
Workplace Pension Schemes
A workplace pension scheme is a pension plan provided by an employer to its employees as part of their employment package. It is designed to help individuals save towards their retirement and ensure financial security in their old age.
Under a workplace pension scheme, both the employer and the employee contribute a certain percentage of the employee’s salary into the pension fund. These contributions are invested and grow over time, with the goal of providing a reliable source of income in retirement.
There are two main types of workplace pension schemes in the UK: defined benefit schemes and defined contribution schemes. In a defined benefit scheme, the pension income is based on the employee’s salary and length of service, while in a defined contribution scheme, the pension income depends on the amount invested and the performance of the investments.
Workplace pension schemes in the UK are subject to legal requirements, and employers must automatically enroll eligible employees into a scheme and contribute to their pension fund. Employees also have the option to opt out of the scheme if they wish, although it is usually encouraged to stay enrolled to benefit from the employer contributions.
It is important for individuals to understand the details of their workplace pension scheme, including the contribution rates, investment options, and any additional benefits provided by the employer. This knowledge will help them make informed decisions about their pension savings and ensure they are on track to achieve their retirement goals.
How to Qualify for a UK Pension?
Qualifying for a UK pension is an important step in securing your financial future. The UK pension scheme is designed to provide individuals with a stable income during retirement. To be eligible for a UK pension, you must meet certain criteria:
1. National Insurance Contributions
To qualify for a UK pension, you must have made enough National Insurance contributions over your working life. These contributions are deducted from your salary and go towards funding the pension scheme.
2. Minimum Qualifying Period
There is a minimum qualifying period to be eligible for a UK pension. Currently, you need to have at least 10 years of National Insurance contributions to be entitled to the basic State Pension. To receive the full State Pension, which is currently £179.60 per week, you need to have 35 years of contributions.
3. State Pension Age
The State Pension age in the UK is determined by your date of birth. It is gradually increasing for both men and women, reaching 67 by 2028. It’s important to check the current State Pension age to ensure you meet the age requirement.
4. Other Pension Schemes
If you have been a member of other pension schemes, such as a workplace or personal pension, these contributions may also count towards qualifying for a UK pension. It’s important to keep track of your pension history and ensure that all your contributions are accounted for.
| Qualification Criteria | |
|---|---|
| National Insurance Contributions | Enough contributions over your working life |
| Minimum Qualifying Period | At least 10 years for basic State Pension, 35 years for full State Pension |
| State Pension Age | Determined by your date of birth |
| Other Pension Schemes | Contributions from workplace or personal pension schemes may count |
By understanding the qualifying criteria for a UK pension, you can ensure that you are on track to receive a stable income during retirement. It is important to regularly review your pension contributions and seek advice from a financial advisor to make the most of the UK pension scheme.
Eligibility for State Pension
The UK has a state pension scheme in place to provide financial support to individuals who have reached retirement age.
In order to be eligible for the state pension, you must have made a minimum number of National Insurance contributions throughout your working life. The number of years required varies depending on your birthdate and the specific rules in place at the time.
Currently, to qualify for the full state pension, you generally need to have made at least 35 years of qualifying National Insurance contributions. However, you may still be eligible for a partial pension if you have made fewer contributions.
It’s important to note that there are also additional eligibility criteria for the state pension, such as residency requirements and age limits. These criteria may change over time, so it’s important to stay updated with the latest information from the government.
Furthermore, if you have any gaps in your National Insurance record, such as periods of unemployment or time spent living abroad, you may still be able to make voluntary contributions to fill in those gaps and ensure your eligibility for the state pension.
Overall, understanding the eligibility requirements for the UK state pension is crucial for planning your retirement and ensuring you receive the financial support you are entitled to.
Contributions to a UK Pension Scheme
Contributing to a UK pension scheme is an important step in securing your financial future. By making regular contributions to your pension scheme, you are investing in your retirement and ensuring that you will have a steady income when you reach the age of retirement.
Employer Contributions
One of the key features of a UK pension scheme is that it often includes contributions from your employer. This means that in addition to your personal contributions, your employer will also contribute a certain amount to your pension fund. The exact amount will vary depending on the scheme and your employment agreement.
Employee Contributions
As an employee, you will be required to make your own contributions to your pension scheme. This can be done through regular salary deductions or by making additional contributions on a voluntary basis. The amount you contribute may also be eligible for tax relief, which can further boost your pension savings.
Pension Tax Relief
In the UK, contributions to a pension scheme often qualify for tax relief. This means that the amount you contribute is deducted from your taxable income, reducing the amount of income tax you have to pay. The exact tax relief available will depend on your individual circumstances and the pension scheme you are enrolled in.
Automatic Enrollment
In recent years, the UK government has introduced a system of automatic enrollment, which requires employers to automatically enroll eligible employees into a pension scheme. This has increased the number of workers with pension coverage and made it easier for individuals to start saving for retirement.
| Contribution Type | Who Contributes | How Much |
|---|---|---|
| Employer Contributions | Employer | Varies, often a percentage of salary |
| Employee Contributions | Employee | Varies, often a percentage of salary |
It is important to review the specific terms and conditions of your pension scheme to fully understand the contribution requirements and any additional options or benefits that may be available to you.
Tax Relief on UK Pensions
As part of the UK pension scheme, individuals are eligible for tax relief on their pension contributions. This means that when you contribute to your pension, you are entitled to receive tax relief from the government. The amount of tax relief you receive depends on your personal tax rate.
There are three types of tax relief available on UK pensions:
- Basic Rate Tax Relief: This is the most common type of tax relief and is available to everyone. If you are a basic rate taxpayer, for every £80 you contribute to your pension, the government will add £20 in tax relief, bringing the total contribution to £100. This is because the government adds basic rate tax relief of 20% to your pension contributions.
- Higher Rate Tax Relief: If you are a higher rate taxpayer, you can claim additional tax relief on your pension contributions. The amount of additional relief depends on your specific tax rate, which is usually 40%. For example, for every £60 you contribute to your pension, the government will add £40 in tax relief, bringing the total contribution to £100. It is important to note that higher rate taxpayers need to claim this additional relief through a self-assessment tax return.
- Additional Rate Tax Relief: If you are an additional rate taxpayer, you can also claim further tax relief on your pension contributions. The additional relief is usually 45% of your contribution. For example, for every £55 you contribute to your pension, the government will add £45 in tax relief, bringing the total contribution to £100. Similar to higher rate taxpayers, additional rate taxpayers need to claim this relief through a self-assessment tax return.
It’s important to understand the tax relief available on UK pensions as it can significantly boost your retirement savings. Make sure to take full advantage of the tax relief offered by contributing regularly to your pension scheme.
Pension Options at Retirement
When you reach retirement age in the UK, you will have various options for your pension scheme. It is important to understand these options and make informed decisions based on your individual circumstances.
1. Take a Pension Lump Sum
One of the options available to you is to take a lump sum payment from your pension. This can be a tax-free amount up to a specific limit, known as the lifetime allowance. Any amount taken above the lifetime allowance may be subject to tax.
2. Purchase an Annuity
Another option is to use your pension fund to purchase an annuity, which provides you with a regular income for the rest of your life. Annuity rates can vary, so it is important to shop around and compare different providers to get the best deal.
3. Flexi-Access Drawdown
A popular option nowadays is to choose flexi-access drawdown. This allows you to keep your pension fund invested while taking an income from it as and when you need. You have the flexibility to adjust your withdrawals according to your financial needs.
4. Leave the Pension Fund Invested
If you have other sources of income and do not need to access your pension immediately, you can choose to leave the pension fund invested. This gives you the potential for future growth and can be a good option if you don’t require immediate income.
5. Combination of Options
In some cases, a combination of the above options may be the most suitable for your retirement plans. You can take a lump sum for immediate expenses, purchase an annuity for guaranteed income, and keep the rest of your pension fund invested for potential growth.
| Option | Advantages | Disadvantages |
|---|---|---|
| Take a Pension Lump Sum | Immediate access to a portion of your pension | Tax implications for amounts above lifetime allowance |
| Purchase an Annuity | Secure and guaranteed income for life | Annuity rates may vary |
| Flexi-Access Drawdown | Flexibility to adjust income withdrawals | Investment risk and potential for depleting pension fund |
| Leave the Pension Fund Invested | Potential for future growth | No immediate income |
| Combination of Options | Customizable approach to suit your needs | Complexity in managing various options |
It is important to seek professional financial advice when deciding on your pension options at retirement. An expert can help you navigate the complexities of the UK pension scheme and make the most suitable decisions for your financial future.
How to Track Your UK Pension?
If you have a UK pension, it’s important to keep track of it to ensure you’re receiving the correct amount of money in your retirement years. Here are a few steps to help you track your UK pension:
1. Contact Your Pension Provider
The first step is to get in touch with your pension provider. They will be able to provide you with the most up-to-date information about your pension scheme, including the current value and any recent changes.
2. Check Your Annual Pension Statement
Your pension provider should send you an annual statement outlining the details of your pension scheme. Make sure to review this statement thoroughly and identify any discrepancies or errors.
3. Register for an Online Pension Tracker
Many pension providers now offer online platforms where you can track and manage your pension scheme. These platforms typically allow you to view your pension balance, update your personal details, and access other helpful resources.
Note: Make sure to choose a secure and reputable online pension tracker to protect your personal information.
4. Keep Track of Your Contributions
It’s essential to keep a record of your pension contributions over the years. This will help ensure that you’re being credited for all the contributions you’ve made and that your pension is on track.
5. Seek Professional Advice
If you’re unsure about how to track your UK pension or have any concerns about your retirement savings, consider seeking professional financial advice. A qualified advisor can help you navigate the complexities of the pension scheme and provide guidance tailored to your individual circumstances.
In conclusion, tracking your UK pension is crucial for your financial security in retirement. By following these steps and staying informed, you can ensure that you’re on track to receive the pension benefits you deserve.
Pension Protection in the UK
Ensuring the security and protection of pensions in the UK is a top priority for the government. The Pension Protection Fund (PPF) was established to provide a safety net for individuals whose pension schemes fail.
Pension Protection Fund (PPF)
The PPF is a statutory fund that provides compensation to members of eligible defined benefit pension schemes. It is funded by a levy imposed on eligible pension schemes. The PPF ensures that individuals receive at least a basic level of pension income if their scheme collapses.
The PPF provides protection to eligible members by taking over the assets and liabilities of a failed pension scheme. It pays compensation to members based on their length of service and the level of their pension benefits. However, there are certain limits to the amount of compensation that can be provided.
It is important to note that not all pension schemes are eligible for protection by the PPF. Only defined benefit schemes are covered, and there are certain criteria that a scheme must meet to be eligible.
Financial Services Compensation Scheme (FSCS)
In addition to the PPF, the Financial Services Compensation Scheme (FSCS) provides protection for individuals in the UK in the event that their pension provider becomes insolvent. The FSCS is a government-backed fund that compensates individuals for any financial losses they may incur.
The FSCS covers a wide range of financial services, including pensions. It ensures that individuals are protected and can claim compensation if their pension provider fails and they suffer financial loss as a result.
However, it is important to be aware that the FSCS has different compensation limits and rules depending on the type of financial product or service that is involved.
| Pension Protection Fund (PPF) | Financial Services Compensation Scheme (FSCS) |
|---|---|
| Provides compensation to members of eligible defined benefit schemes | Compensates individuals for financial loss if pension provider becomes insolvent |
| Funded by a levy on eligible pension schemes | Government-backed fund |
| Covers only defined benefit schemes | Covers a wide range of financial services |
| Has certain criteria for eligibility | Different compensation limits and rules based on the financial product or service |
Planning Your Retirement with a UK Pension Scheme
As you approach retirement age, it’s important to start planning for your future. One way to ensure a comfortable retirement is by participating in a UK pension scheme. A pension is a form of savings that you contribute to during your working years, and it provides you with a regular income once you retire.
Participating in a UK pension scheme offers several benefits. First and foremost, it allows you to save for your retirement in a tax-efficient manner. Contributions to a pension scheme are typically made from pre-tax income, meaning that you don’t pay tax on the money you contribute. Additionally, your pension savings grow tax-free, allowing you to maximize your investment returns.
There are two main types of UK pension schemes: defined benefit and defined contribution. A defined benefit scheme guarantees you a specific income in retirement, based on factors such as your salary and years of service. On the other hand, a defined contribution scheme allows you to build up a pension pot through regular contributions. The size of your pension pot will depend on factors such as the amount you contribute and the performance of your investments.
When planning for your retirement with a UK pension scheme, it’s important to consider your goals and financial situation. Determine how much income you will need to live comfortably in retirement and work backwards to calculate the amount you need to contribute to your pension scheme. Take into account any other sources of income, such as the state pension, and factor in any other retirement plans you may have, such as downsizing your home or traveling.
It’s also important to regularly review and reassess your pension contributions and investment strategy. As your circumstances change, you may need to adjust your contributions or switch to a different investment option to ensure that you are on track to meet your retirement goals. Consulting with a financial advisor can be beneficial to help you make informed decisions and optimize your pension savings.
Overall, planning your retirement with a UK pension scheme is a smart financial move. By taking advantage of the tax benefits and carefully managing your contributions and investments, you can secure a comfortable and financially stable future.
Q&A:
What is the UK Pension Scheme?
The UK Pension Scheme is a government-backed retirement savings plan that provides individuals with a source of income during their retirement years.
How does the UK Pension Scheme work?
The UK Pension Scheme works by individuals making contributions to their pension fund throughout their working years. This fund is then invested by the pension provider, and the individual receives regular payments from the pension fund once they reach their retirement age.
What are the different types of UK Pension Schemes?
There are two main types of UK Pension Schemes – the State Pension and workplace pensions. The State Pension is a basic pension provided by the government, while workplace pensions are offered by employers to their employees.
At what age can I start receiving the UK State Pension?
The age at which you can start receiving the UK State Pension depends on your date of birth. Currently, the State Pension age is gradually increasing, and it is expected to reach 66 for both men and women by 2020.
Can I contribute more to my UK Pension Scheme than the minimum amount required?
Yes, you can contribute more to your UK Pension Scheme than the minimum amount required. This can help increase your pension fund and provide you with a higher income during your retirement years.
What is the UK Pension Scheme?
The UK Pension Scheme is a retirement savings program provided by the UK government. It is designed to provide individuals with a stable income during their retirement years.
How does the UK Pension Scheme work?
The UK Pension Scheme works by requiring individuals to make regular contributions to their pension fund throughout their working lives. These contributions are then invested and grow over time. Upon reaching retirement age, individuals are eligible to receive a pension based on the value of their fund.
When can I start receiving my UK pension?
You can start receiving your UK pension once you reach the official retirement age, which is currently 66 for both men and women. However, you have the option to defer receiving your pension and receive higher payments later on.