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.