Scottish Life have warned that businesses should be aware of impending new anti-discrimination legislation, which will mean that some companies will have to make pension payments to employees who are still working for them. Until 6th April this year, people could not draw pension payments while still working, but under the new laws which come into force in October, employers will no longer be able to make an employee retire before the age of 65, and as many occupational schemes start paying out earlier than 65, there is confusion as to whether people will start receiving payments while they are still working.
Our view
We do not see this as a major issue. Many people receive pensions whilst working and likewise many work on after 65. The only issue is employers being aware that they cannot force retirement at 65 anymore.