RPSM08100040 - Technical Pages: Pension age: Maximum pension age

Maximum pension age

Pension entitlements that arose before 6 April 2011

There was no maximum age by which benefits must be taken, but after age 75 there were stricter rules on how a pension must be provided and this was dependent on the type of scheme being administered. Pension benefits had to be provided in the form of secured pension or alternatively secured pension (in a money purchase scheme) in accordance with RPSM09101030.

If the scheme rules allowed a member to take a pension commencement lump sum, to be payable free of income tax entitlement to the lump sum had to arise before they reached their 75th birthday. Any lump sum paid to a member where entitlement to it arose on or after their 75th birthday was treated as an unauthorised payment and the member and the scheme administrator were liable to a tax charge (see RPSM09104140).

Any benefits which had not been crystallised by the member’s 75th birthday were deemed to have been taken at that point and were tested against the then remaining lifetime allowance whether actually paid or not. How these benefits are tested will depend on the type of scheme being administered. For further information see RSPM09100200 and RPSM09100380.

If the member reached age 75 between 22 June 2010 and 5 April 2011 you should also read the guidance at RPSM17100000 onwards.

Pension entitlements that arose on or after 6 April 2011

Pension benefits paid after the normal minimum pension age may be paid as a secured pension or (if a money purchase arrangement) as a drawdown pension, see RPSM09100390. Pension benefits do not have to commence by age 75. The tax rules permit benefits to commence after age 75, including as a pension commencement lump sum, see RPSM09100360.

All accrued funds or rights not crystallised by a member’s 75^th birthday are crystallised for lifetime allowance purposes at that time (see RPSM09100380).