Working After Retirement: What You Need to Know

Growing numbers of UK adults are continuing to work past State Pension age — either through choice or financial necessity. Here is what you need to understand.

Tax in Retirement

You still pay Income Tax in retirement if your total income exceeds your Personal Allowance (£12,570 in 2024/25). State Pension, private pension income and employment income are all combined for tax purposes.

National Insurance

Good news: once you reach State Pension age, you stop paying National Insurance contributions, even if you continue working. This gives you an automatic pay rise equivalent to NI savings.

Effect on Benefits

Working may affect means-tested benefits such as Pension Credit. Always check before accepting work if you currently receive means-tested support.