RPSM08400010 - Employer Pages: Pension Age: What is meant by pension age?

What is meant by pension age?

Pension age is the age at which an employee can take their pension benefits. The rules of the pension scheme will determine the minimum and maximum age employees can take their pension benefits from the scheme. Generally scheme rules must not allow an employee to take their pension benefits from the scheme until they reach normal minimum pension age (see RPSM08400020).

The scheme rules should determine the minimum and maximum ages at which the employees can take their benefits from a particular scheme. Scheme rules should not allow benefits to be paid before the minimum pension age and there are tax consequences for any that are, as such payments will normally be unauthorised payments from the scheme.