# Retire at 65, 66, 67 or 68



## moneymakeover (13 May 2018)

I have more than 10 years before I hit 65

I'm slightly annoyed that I won't qualify for state pension until age 68

And can't decide what age I should plan to retire at.

First question, can I retire say 66 but wait until 68 to invoke pension? Would there be any advantage eg Continued growth of fund. Delay in buying annuity.

In this case I would need savings to tide over until aged 68

I have heard mention of job seekers allowance. Is that like queuing for the dole? Would that only apply person aged 67? Ie one year before retirement.

Is it good idea to build up savings to fund living after retirement before age 68?


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## Conan (13 May 2018)

Whilst you may not qualify for the State Pension until age 68, your occupational pension is entirely separate.
Drawing your occupational pension may well depend on the Scheme rules. Are you in a DB scheme or a DC scheme? You probably can draw your occupational pension based on the Normal Pension Age of the scheme (perhaps age 65). That might leave a 3 year gap before drawing your State Pension. Currently retirees at age 65 can claim Jobseekers Benefit between 65 and 66 (no queuing and paid directly into your Bank account). But when the State Pension age goes to 67 and 68, it is unknown whether you will still be able to claim Jobseekers to bridge the extended gap.
Remember that under your occupational pension you will have the option to take part of your pension fund as a tax-free lump sum (either 25% of a DC fund or 150% of Salary in a DB scheme). This might sustain you for the 3 year gap. But remember that once you retire and draw down the tax-free lump sum, you must them use the balance (if DC) to either buy an Annuity or invest in an ARF.
Hope this helps.


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## Barney Magoo (14 May 2018)

I've wondered about the implications for DC scheme options on reaching 65 because of this delay to the State Pension. 
As there won't be the €12,000 odd from the state pension for another 3 years, does this mean that starting an ARF at 65 is not an option for retirees in DC schemes? Are they thus forced to purchase an annuity or an AMRF?


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## moneymakeover (14 May 2018)

It is my impression people use pension to top up state pension.
Say I planned 10k per year in my pension eg 12k +10k to live on

Then in the space of three years would need 66k before state pension. If you can follow my reasoning.

Then in that three years I would have used up 6.6 years of the intended pension pot.
(6.6 years multiply by 10k =66k)

So if could save up to cover 18 months

And work until age 67 and half that would protect the pension entirely. Pension would only kick in aged 68.


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## LDFerguson (15 May 2018)

Barney Magoo said:


> I've wondered about the implications for DC scheme options on reaching 65 because of this delay to the State Pension.
> As there won't be the €12,000 odd from the state pension for another 3 years, does this mean that starting an ARF at 65 is not an option for retirees in DC schemes? Are they thus forced to purchase an annuity or an AMRF?



In this situation, the AMRF would tend to be the popular choice.  Remember that when you later meet the minimum income requirement, your AMRF becomes an ARF.  So if the State Pension is what brings someone over the minimum income threshold, then you only end up holding the AMRF for a couple of years until you qualify for the State.  I see people using savings and/or part of their retirement lump sums to replace the State in these circumstances for a few years.  And you can withdraw 4% per year from the AMRF anyway.

Regards, 

Liam
http://ferga.com


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## moneymakeover (15 May 2018)

LD

Only the investment growth can be taken from the amrf before age 75


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## LDFerguson (15 May 2018)

moneymakeover said:


> LD
> 
> Only the investment growth can be taken from the amrf before age 75



Not any more.  Finance Act 2014 changed that so that, with effect from 1st January 2015 you can withdraw 4% of the value of an AMRF per year.


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## Barney Magoo (16 May 2018)

LDFerguson said:


> In this situation, the AMRF would tend to be the popular choice.  Remember that when you later meet the minimum income requirement, your AMRF becomes an ARF.  So if the State Pension is what brings someone over the minimum income threshold, then you only end up holding the AMRF for a couple of years until you qualify for the State.  I see people using savings and/or part of their retirement lump sums to replace the State in these circumstances for a few years.  And you can withdraw 4% per year from the AMRF anyway.
> 
> Regards,
> 
> ...



Thanks Liam.


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