Earnings Rules

Even if you do retire, you are not free to earn whatever you like in those first five years after pension age. If you earn over a certain amount, the Government takes back some of your pension under the earnings rule. In fact, there are now several earnings rules.

Under the basic earnings rule, your pension will be reduced if you earn more than £79 a week.

You lose 9p of your pension for every 10p of your first £8 earnings over the limit. And you lose 9 p pension for every 9 p earned over this amount. The current basic single pension will vanish completely as earnings reach £116.19 .

A married man will lose his own entire basic pension at the same level. His wife will lose her pension on his contributions as her earnings reach £111.79. Her pension cannot be lost by her husband's earnings.

A man with a dependent wife under sixty can lose his entire pension, including the extra paid for her, through his own earnings if they reach £188.9O. The pension paid for her is also affected by her earnings (see below).

Find out more - Fees And Occasional Work

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Fees And Occasional Work

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