Retirement Allowance
- Conditions of entitlement
- The decision on your claim
- If you disagree with the decision
- How much benefit you will get
- How you are paid
- If your circumstances change
- Effects of Retirement Allowance on other benefits
Conditions of entitlement
Retirement Allowance (RA) replaces REA when you reach state pension age if REA is at least £2.00 a week and you are not in regular employment. [Legislation (90)]
If REA is paid at less than £2.00 a week and you are not in regular employment when you reach state pension age you will not be entitled to either REA or RA.
Regular employment means working under a contract of service for an average of 10 hours a week or more over a period of 5 consecutive weeks or more. [Legislation (91)]
If you are in regular employment when you reach state pension age, you will continue to receive REA for as long as you remain in regular employment. Once you stop regular employment your entitlement to REA will be replaced by entitlement to RA, provided that REA was payable at over £2.00 a week.
You do not need to claim RA. You will be sent a letter to complete before reaching state pension age.There will be a part of this you have to complete and return before a decision can be made. The letter will ask for details of your employment.
The decision on your claim
You will be notified of the decision in writing. It will explain the decision and if there is any benefit payable.
If you disagree with the decision
How much benefit you will get
RA is paid for life. [Legislation (92)]
The weekly rate of RA is whichever of the following is less (1/2p or more being rounded up):
- either 25% of the weekly rate of REA to which you were last entitled
- or 10% of the 100% Industrial Injuries Disablement Benefit pension rate. [Legislation (93)]
You can only get one award of RA, regardless of how many REA awards were in payment previously.
How you are paid
RA will be paid in the same way as your REA direct into an account.
It is paid either every week, every 4 weeks or every 13 weeks.
If you are receiving Industrial Injuries Disablement Benefit your RA will be paid together direct into the same account.
If your circumstances change
If you are imprisoned you cannot get RA. You must tell your regional Industrial Injuries Disablement Benefit Centre when you are admitted When you are released tell your regional Industrial Injuries Disablement Benefit Centre straight away so that payment can be considered again. [Legislation (94)]
If you are living abroad and have maintained underlying entitlement to REA whilst abroad, even though disqualified from receiving payment, you can be awarded and paid RA once you are over the minimum pension age and cease regular employment.
If you are entitled to RA and live, or go to live, in any country you will continue to receive RA for life. [Legislation (95)]
Effects of Retirement Allowance on other benefits
Your Retirement Allowance does not affect any other National Insurance benefits such as:
- Incapacity Benefit
- Employment and Support Allowance (contribution-based)
- Contribution-based Jobseeker’s Allowance
- Retirement Pension.
But Retirement Allowance may affect income-related benefits you or your partner (We use partner to mean a person you are married to or a person you live with as if you were married to them, or a civil partner or a person you live with as if you are civil partners.) receive such as:
- Income Support
- Employment and Support Allowance (income-related)
- Income-based Jobseeker’s Allowance
- Pension Credit
- Housing Benefit
- Working Tax Credit
- Child Tax Credit.
Note: You will have to contact your local authority to confirm if any reduction you or your partner receive in your council tax bill is affected.
