Paying into a Secondary Pension can continue for an employee until they reach their State Pension Age.
If you aren't sure what your pension age is, you can calculate this using the pension age calculator available on our Pension Age Calculator page. After you reach this age, if you wish to continue to contribute, you will need to submit a request to your employer to continue to be enrolled in the scheme as you will be able to join on a voluntary basis until you are 75.
Can I take my pension early?
- The earliest age you will be able to access your pension will be 50 unless you qualify due to incapacity. If you believe you should qualify for early payment you will need to speak to your pension provider so they can assess your case and determine whether these benefits can be put into payment.
What happens if I don't want to take my pension when I reach pension age?
- You will be able to continue contributing on a voluntary basis until you are 75. You won't be able to wait beyond 75 to take your pension so they would need to come into payment at that point. You will need to speak to your pension provider to find out what options you have for taking your pension after you have reached your State Pension Age.
I'm on a zero hours contract, do I need to be enrolled into a pension scheme?
- Possibly, this will depend on how much you are earning and whether you meet the eligibility criteria. The type of contract won't determine whether or not you are automatically enrolled so if your contract of employment doesn't detail the pension you will be in, it will depend on whether you meet the eligibility criteria for enrolment.
What happens if I'm not living in Guernsey anymore?
- Your pension should still be able to be put into payment but you would need to speak to your pension provider to find out how these can be paid to you overseas. You will also need to let the Revenue Service know that you are receiving a pension from Guernsey but no longer living here, so they will be able to provide your pension provider with updated documentation to confirm whether tax is to be deducted from your pension.
Why is tax deducted from my pension?
- You receive tax relief on your pension contributions, then when the pension comes into payment, tax is deducted from the payments as they are treated as earnings when you retire.
Can I take a lump sum with my pension?
- You would need to speak with your pension provider but you can normally take up to 30% of your pension pot as a lump sum when you retire. Usually, this lump sum is tax free but there is a specific limit for tax free lump sums.
- Each year the States of Guernsey set the maximum lump sum that can be paid tax free. All the lump sums that you have received since January 1998 are added together and any that are paid above that limit are taxed. The current limit can be found on our Tax on Pensions page or from your pension provider. Your pension provider should ensure that your lump sum is taxed correctly based on the information you provide them. If any further tax is owed, Revenue Service will discuss this directly with you.
Will my pension pot ever run out?
- There is a risk that your pension pot may not provide enough for your retirement, you would need to speak to your pension provider about the options available to you and whether you can make any additional contributions or if there is anything you can do to increase the value of your pension pot.
What happens to my pension pot after I retire?
- You would need to speak to your pension provider to find out what investment options are available to you. You might be able to continue investing your remaining pension whilst you are taking payments from it, or you might need to transfer it to another arrangement. A financial advisor will be able to advise you on the best option for you.
I've never had a pension before, is there any point in signing up to one now that I'm older?
- If you don't have a pension scheme and your contract of employment doesn't refer to one, your employer will automatically enrol you into a scheme if you meet the eligibility criteria. Your pension provider will be able to tell you about the different investment options that are available to help you make the most of the contributions you make. It will be your decision whether or not to opt out but it is important you get as much information as possible so you can make a fully informed decision.
