State Pension vs Private Pension: What Changes After Age 70

Category Active well-being for seniors

State Pension vs Private Pension: What Changes After Age 70

Reaching the age of 70 marks an important stage in retirement planning in the UK. By this age, most pensioners will have already accessed their State Pension, and many will also rely on private or workplace pensions to support their income.

However, the way these pensions are structured, taxed, and adjusted can differ significantly after age 70. Understanding these differences is essential for making informed decisions — particularly regarding income stability, tax planning, and long-term financial security.

This guide outlines how the State Pension compares to private pensions once you reach 70, what changes, and what you should consider to maximise your retirement income.

State Pension vs Private Pension: Key Differences After Age 70

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Feature	State Pension	Private / Workplace Pension
Payment Start Age	Begins at State Pension age (currently 66).	Can be accessed from age 55 (57 from 2028).
Amount	Based on National Insurance record.	Based on contributions, investment performance, and drawdown method.
Changes After Age 70	No automatic increases beyond the Triple Lock annual rise.	Income can be flexible (drawdown) or fixed (annuity), depending on choices made.
Tax	Taxable as income above the Personal Allowance.	Also taxable as income, depending on withdrawals.
Inflation Protection	Rises each year through the Triple Lock guarantee.	Varies by provider and investment decisions.

What Happens to the State Pension After Age 70?

Ongoing Payments

Once you begin receiving your State Pension, payments continue automatically for life.

Triple Lock Protection

Each April, the State Pension increases by the highest of: Inflation (CPI), Average UK wage growth, 2.5%.

If You Deferred Before Age 70

If you delayed claiming your State Pension, your weekly amount will be higher when you begin receiving it.
However, deferral after age 70 does not change the increase rate — the benefits are already locked in once claimed.

What Happens to Private Pensions After Age 70?

Private pensions remain flexible after 70, and you maintain control over how and when to withdraw income.

You Can:

- Continue drawdown gradually
- Purchase an annuity for guaranteed income
- Leave the pension invested and withdraw only when needed

Tax Considerations

All withdrawals (beyond the 25% tax-free lump sum, if not already taken) are taxed as income.
Careful planning can help avoid moving into a higher tax band unnecessarily.

Investment Risk

If your pension remains invested, your income may rise or fall depending on market performance.
Reviewing investment strategy regularly becomes even more important after 70.

Financial Planning Tips for Over 70s

Review pension withdrawals annually to avoid tax inefficiency.
Check eligibility for Pension Credit, which can increase income if living on a lower pension.
Consider seeking regulated financial advice for sustainable drawdown planning.
Ensure beneficiary information is up to date to protect inheritance options.

FAQ – Optimised for Search

Does the State Pension increase automatically after age 70?

Yes, it increases each year under the Triple Lock system, but there are no special increases solely for turning 70.

Can I continue to withdraw from my private pension after age 70?

Yes. There is no upper age limit for pension drawdown.

Is pension income taxed after age 70?

Yes. State and private pension income above the Personal Allowance is subject to income tax.

What if I delayed claiming my State Pension before age 70?

Your pension amount may be higher, depending on how long you deferred and the rules at the time.

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