Your Legal Right to Work Past 70 in the UK
The most important legal provision protecting older workers in the UK is the Equality Act 2010, which made age a protected characteristic. This legislation ensures that you cannot be discriminated against in recruitment, employment terms, promotions, or dismissal based on your age. The key change came with the abolishment of the Default Retirement Age (DRA) in 2011, which previously allowed employers to force retirement at 65. Today, there is no set retirement age, and the decision to stop working is yours alone.
Can my employer force me to retire at 70?
In almost all cases, no. Your employer cannot legally force you to retire at 70. There are very limited exceptions where a compulsory retirement age can be justified, but employers must demonstrate this is a "proportionate means of achieving a legitimate aim". Examples are rare and typically relate to jobs requiring specific, proven physical abilities, such as certain roles within the armed forces or fire service, or where there is a statutory retirement age. Without such a justification, a mandatory retirement age is unlawful, and forcing an employee to retire could constitute age discrimination.
Your protections under the Equality Act 2010
The Equality Act protects you from several forms of age-related discrimination:
- Direct Discrimination: This is when you are treated less favourably than someone else because of your age. An example would be an employer denying you a promotion simply for being 'too old'.
- Indirect Discrimination: This occurs when an employer’s policy or practice, which applies to everyone, puts people in a particular age group at a disadvantage. For example, a company only offering training to recent graduates, which would exclude older employees.
- Harassment: This includes unwanted conduct related to age that violates your dignity or creates an offensive environment. This can include ageist jokes or stereotypes.
If you believe you have faced discrimination, you can raise the issue with your employer and, if necessary, take a claim to an employment tribunal.
Financial Considerations When Working Past 70
Continuing to work past 70 has several financial implications that you should be aware of, affecting your tax, National Insurance, and pension income. Managing these aspects correctly is crucial for optimising your financial position.
National Insurance and Income Tax
- National Insurance Contributions (NICs): When you reach State Pension age, you stop paying Class 1 NICs on your earnings. This can lead to a noticeable increase in your take-home pay. Self-employed individuals also stop paying Class 2 and, in the next tax year, Class 4 contributions.
- Income Tax: You will continue to pay income tax on your earnings, just as before. However, your total taxable income will include your salary, private pensions, and the State Pension if you claim it. This could push you into a higher tax bracket.
State Pension and Deferment
- Claiming Your Pension: You are entitled to claim your State Pension while still working. You will not receive it automatically; you must claim it from the government.
- Deferring Your Pension: You have the option to defer claiming your State Pension. The longer you delay, the larger the weekly payments you will receive when you do start claiming. This could be a worthwhile financial decision, depending on your circumstances.
Workplace and Private Pensions
- Occupational Pensions: Many occupational pension schemes have a 'normal pension age' (NPA), but you are not required to stop working to access these funds. You can often draw from your workplace pension while continuing to work for the same employer. It is important to check the rules of your specific scheme.
- Private Pensions: If you have a private pension, you can typically start accessing it from age 55 (rising to 57 in 2028), even if you are still working. How you access these funds (e.g., drawdown vs. annuity) will have tax implications and should be planned carefully.
Comparison of Working vs. Retiring at 70
| Aspect | Working Past 70 | Full Retirement at 70 |
|---|---|---|
| Income | Continued salary or freelance earnings, plus State and private pensions. Potential for higher overall income. | Relies solely on pension income and investments. Less overall income, but no need to work. |
| Taxes | No National Insurance contributions on earnings. Income Tax still payable on total income, including pensions, possibly at a higher rate. | Income Tax only on pension income and investments. Likely lower overall tax burden compared to working. |
| Pension Flexibility | Can defer State Pension to increase future payments. Ability to draw from private and workplace pensions while continuing to earn. | Access all pension funds immediately. Must manage drawdown to avoid exhausting funds too early. |
| Lifestyle | Maintains routine, mental stimulation, and social connections from work. Less leisure time but more financial security. | More leisure and free time for hobbies, travel, and family. May need to be more careful with finances. |
| Health & Wellness | Some studies show continued work can boost mental and physical health. Requires balancing work with any health needs. | Can focus entirely on health, fitness, and relaxation. Important to maintain an active, engaged lifestyle. |
Options for Flexible Working in Later Life
For many, working full-time past 70 is not desirable, but they still wish to remain active and earn some income. UK employment law supports a range of flexible working options that can help older workers achieve a better work-life balance.
Common Flexible Working Arrangements Include:
- Part-time hours: Reducing your working hours is a common way to transition towards retirement, known as phased retirement. You still maintain the same rights as full-time employees.
- Job sharing: This allows you to split a full-time role with a colleague, dividing the hours and responsibilities.
- Compressed hours: You can work your contracted hours over fewer days, giving you longer weekends or days off during the week.
- Remote or hybrid working: Working from home part or all of the time can offer greater flexibility and reduce the stress and cost of commuting.
It is important to discuss these options with your employer. They have the right to reject a request for flexible working, but they must have a valid business reason for doing so. A formal, reasoned refusal can be challenged if you feel it's unjustified.
Conclusion
In the UK, the answer to "can you still work at 70" is a definitive yes, thanks to the abolition of the default retirement age and strong legal protections against age discrimination. The choice to continue working or retire is a personal one, with significant legal and financial implications to consider. By understanding your rights under the Equality Act 2010, the impact on your pensions and taxes, and the flexible working options available, you can make an informed decision that suits your individual circumstances and financial needs. Whether you choose to work full-time, part-time, or embrace full retirement, the law is on your side, allowing you to control your later career path.
