This depends on the type of pension.
The States Pension is available to those who have paid social security contributions during their working life.
For other types of pension you are eligible to receive a pension if you are enrolled into a pension, or have signed up to a pension voluntarily.
The introduction of Secondary Pensions means that all individuals who meet the criteria should be enrolled into a pension by their employer.
This depends on the type of pension.
The States Pension is available when you reach the relevant State pension age, and this can vary depending on when you were born.
For other types of pension in Guernsey or Alderney you may be able to receive income from your pension before or after that age, subject to the rules of the plan and any agreement with your employer.
The Normal Retirement Age within Your Island Pension will be aligned with the State pension age, however it may be possible for individuals to alter this if needed subject to their circumstances or in accordance with their agreed retirement age with their employer. The minimum and maximum retirement age under Guernsey Income Tax Law would apply in all instances.
This depends on the type of pension you have.
Your Island Pension will offer a one-off lump sum payment at the time that a member starts to receive benefits from their pension. This can be up to 30% of their total pension pot value and generally this will be paid tax-free.
Thereafter a regular income can be paid to members. The amount that can be paid will be based on their total pension pot value, their age and trying to ensure they have an income for life.
In most circumstances it is not possible to fully withdraw your pension. The primary purpose of a pension is to provide someone with an income in retirement.
Tax on pension withdrawal
Income paid from a Guernsey approved pension to a Guernsey tax resident is generally subject to 20% income tax, withheld at source. Tax relief is given on contributions paid in.
In some cases individuals can receive a lump sum payment of up to 30% of their total pension pot value and this will be paid tax free. There are maximum caps to the amount payable tax-free and so those with significant pension values may be taxed on the surplus of any lump sum paid that exceeds this.
Can you withdraw your pension early?
It is generally not possible to receive anything from your pension prior to retirement age.
In certain very specific circumstances such as serious ill-health or incapacity it may be possible to receive your pension early.
Can I withdraw my pension fund while working?
This depends on the type of pension and any contractual agreements you might have with your employer. It may be possible to receive income from your pension and to continue working.
Your Island Pension would allow for someone to be in receipt of benefits whilst still working, however it would not allow any further contributions to be paid in once someone has started taking benefits.