Many people reach retirement age but make the decision to carry on working. 870,000* people in the UK over the age of 65 either work part or full time.
Reasons for working after retirement age vary, of course. Some people enjoy their jobs, some want to keep their minds active, and others find they need to financially.
Working and receiving your pension Importantly, if you decide to work past State Pension age you can still receive your State Pension and/or private pension plus any earnings you make from working. It may be useful to look at our countdown to retirement page, which covers steps you can take if you are approaching retirement.
If you are already retired, but considering work as a way of boosting your income, there is nothing to stop you - but be aware of the tax implications, as extra income could change your tax status.
You may also want to consider other retirement income options.
Working and deferring your pension Once you reach retirement age, you have the option to defer your State Pension which may increase the amount you receive. The best place to find out about this is on the Direct Gov website.
You can also defer drawing your personal or occupational pension. This is a complicated decision and we would recommend you seek financial advice.
Retirement income and taxWhatever you decide, please take into consideration that pension income is taxable, so it is worth checking the HMRC website for further guidance.
* Source: Office for National Statistics for the period October - December 2010
Useful links Getting advice and support
Are you eligible for an enhanced annuity?
Are you eligible for equity release?