What is the Retirement Age for an MP?

The question of ‘what is the retirement age for an MP’? is obviously a hot topic in particular after the last few years of expenses scandals and changes in pensions legislation, as well as maybe of those close to retirement age being upset that MPs have gold-plated pensions that allow them to retire early on a generous income. Many people feel that the retirement age for an MP should be the same as anyone else – but is it?

Changes have been made as recently as this year (2015) to the Parliamentary Contributory Pension Fund which means not only a change in the way benefits are calculated but also to the retirement age for MPs.

The retirement age for MPs whether they are members of the old final salary scheme, or the new scheme that was introduced in May 2015, is age 65. This may surprise some people as they think that MPs can retire much earlier than this.

However, there are plans in place to increase the retirement age for MPs in line with the increase in the State Pension Age (which will be increasing to 66 and 67 depending on when you were born). So in future all MPs will have the same retirement age as the State Pension Age for the benefits that are payable from the new scheme. But for those who are protected by the old final salary scheme (which is those within 10 years of retirement), and for the benefits that have previously been earned in the old scheme, their retirement age will remain at 65 (for those benefits)as long as they are no longer serving as an MP when they reach that age.

So the long and short of it is that the retirement age for MPs will increase in line with any increases in the state pension age, but like any other company pension scheme where benefits have been accrued in a previous version of the scheme, the old scheme rules apply for the period of membership of that scheme.

What is the Retirement Age for a Footballer?

Due the the relatively short lifespan of being able to play football professionally, in the past the retirement age for a professional footballer was set at 35 (according to the rules of the scheme that professional footballers were allowed to join).

Most footballers were unlikely to go on playing past their 35th birthday with only a few limited number of exceptions. Some would go on to play for lower league teams after this but most of them would hang up their boots with at age 35 or before – quite often due to the higher chance of injury, the higher level of effort required to maintain that level of fitness, or even due to an accumulation of previous injuries.

There have been a number of incarnations of the pension scheme that has been run for professional footballers and up until 2006 the retirement age was set at 35. However, with the advent of many new rules and changes to pension scheme legislation, the retirement age was increased to age 55 for those joining after 5 April 2006.

As with most schemes there is provision in the rules of the scheme to retire at an earlier date due to incapacity.

Of course State Pension Age for professional footballers is no different to any other working person so they would have to wait until the relevant state pension age to take their state pension benefits.

Obviously those players who earn large sums in the premier league will have accountants to advise them how to invest their money for retirement and will probably not need to worry too much about pension benefits! But those whose retirement age is now 55 will have to find a way of either earning more money after their footballing career is over, or else using that money wisely to live on. But obviously if you retire at age 35 that is a long time to have to find funds to sustain a similar lifestyle.