Tom Selby: 'Unretiring' savers must beware pension tax traps

Two key considerations

clock • 3 min read

The idea that retirement means stopping working altogether has become deeply ingrained in the UK but, writes Tom Selby, this is starting to change - with some important ramifications for those planning to 'unretire'

While nobody could claim the UK's pension system is straightforward, the way people have approached the transition from working to retirement has historically been relatively simple. The predominance of defined benefit (DB) meant the structure of most people's pension encouraged them to stop working entirely at a set point in time - usually 60 or 65 - with a set amount of guaranteed income. This might have been supplemented by a smaller personal pension pot bought through a financial adviser. The state pension system too has been designed based on this ‘clean break' between working an...

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