Working in later life

For many people, money is a major reason for working past State Pension age, but it’s not the only motivation. If you’re still fit, enjoy your role and want to keep working, there may be other benefits, including:

• mental stimulation
• a structure to your days
• social contact and friendship
• a sense of purpose.

Employers also benefit. Older employees can bring a wider range of experience to their workforce and pass on skills to younger workers.

It’s up to you when you claim your State Pension. Once you reach State Pension age, you have three options. You could:

• stop working and claim your State Pension
• continue to work and claim your State Pension as well
• carry on working and delay claiming your State Pension.

If you decide to delay (defer) claiming your State Pension, you may get more money when you do claim it. You do not need to do anything – your State Pension will automatically be deferred until you claim it. Visit Gov.uk to find out more about deferring your State Pension.

Deferring a private pension may not be so beneficial. You should get independent financial advice before deciding what to do with your pension pot if you have one. You can find an adviser through the Society of Later Life Advisers or use MoneyHelper's Retirement Adviser Directory. 

MoneyHelper’s Pension Wise service has more information to help you explore your pension options if you have a UK-based defined contribution pension.  

If you have a workplace pension, you’ll need to speak to your employer to find out if you can delay taking it and how this might affect what you get.

Working can affect your entitlement to means-tested benefits, such as Pension Credit. Deferring your State Pension can also affect how much you can receive in benefits. Call our free Helpline on 0800 319 6789 to speak to an adviser if you need more information.

You may have to pay Income Tax depending on how much you earn. Your tax position could be complicated if you’re receiving income from more than one pension. The charity Tax Help for Older People has a free advice service for people on low incomes.

You do not usually have to pay National Insurance contributions once you reach State Pension age. If you’re self-employed, your Class 2 contributions stop straightaway. You may have to pay Class 4 contributions until the start of the next tax year. You can find more information about stopping paying National Insurance on Gov.uk.

There’s no official retirement age and your employer cannot force you to retire, except in some jobs such as construction or the fire service. If you decide to stay on, there are benefits to your employer as they’ll save on recruitment and induction costs. Many employers also value the skills, experience and reliability of older workers.

If you do not want to work full time, you could discuss a phased retirement plan with your employer and consider flexible working. This would allow you to organise your hours to suit you – for example, to fit in around caring responsibilities or to give you time for other things.

Flexible working includes:

• working part time – you'll usually have the same rights as a full-time employee
• job sharing – you share your job with a colleague and split the hours between you
• compressed hours – working the same hours but over fewer days
• working from home.

You might also want to consider self-employment. You’ll need to register as self-employed with HMRC, complete Self Assessment tax returns and you may have to pay tax.

If you’re thinking of setting up your own business, you could get help from the National Enterprise Network. Members offer advice, support and training about starting or developing a small business. Some government-backed schemes also offer support.

If you’ve been out of work for some time, you might need some help to get back to work. You can contact the National Careers Service to get careers advice or use their online tools, such as the skills assessment.

If you’re unemployed and looking for work, your local Jobcentre Plus may also provide support, such as CV advice, training and help with interview preparation.

If you’re worried that you do not have the right skills, or you’re thinking of changing careers, you may want to take a course.

• You could take an online course to build your skills. For example, FutureLearn offers classes from accredited universities and companies, and you can earn certificates to put on your CV.
• Many roles now require IT skills. You might be able to find free or low-cost IT courses at your local library. Or you could try Hi Digital, Vodafone's free online training courses. Digital Unite has guides on topics like using Microsoft Office and email.
• Contact learndirect for advice and details of practical training in your local area. They offer professional development courses and qualifications. They can also give you information about apprenticeships.

Apprenticeships combine practical training in a job with study. There is no upper age limit, but the funding rules are different for adult apprenticeships. You can search for an apprenticeship on Gov.uk.

If money is not a concern, you could also consider volunteering to gain more skills and experience. Many charities welcome volunteers, including Independent Age. Contact one of the organisations below to find opportunities:

• NCVO - in England
• Volunteer Scotland
• Volunteering Wales.

There are various ways of finding vacancies. Using the internet can be effective, but make sure you protect your privacy if you post your details online. 

If you do not have access to the internet or a computer at home, many local libraries offer free internet access. You may need to book a slot. If you live in England or Wales, search for your local library at Gov.uk. If you live in Scotland, search for your local library at gov.scot.

You could try:

• online job search websites – these can be general, such as the government's Find a job service, or related to specific sectors
• company websites
• local and national newspapers
• recruitment agencies
• networking sites, such as LinkedIn.

You could also try approaching an employer directly. Some vacancies are not advertised and it shows you have an interest in their work.

Employers may not respond unless they want to invite you to an interview, which can be disheartening. If you start to lose confidence, it might be a good idea to get advice to make sure your CV and cover letter are working for you. Get in touch with the National Careers Service and arrange to speak to an adviser.

When you apply for jobs, you do not have to say how old you are and employers are not allowed to discriminate on the grounds of age.