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Pension is the facility, availed by service persons in their post retirement period. The option for retirement can be availed by a service person anytime in his service period, however, a service person becomes eligible for state pension in his age of 65 years and the eligible age for a lady for state pension is 60 years. But this rule for the women is to be amended between 2010 and 2020 and it will be 65 years from then onwards.

Presently the earliest age eligible to get the facility of personal pension is 50; however, this depends on the pension scheme rules. From 2010, this is going to rise to 55. That means the benchmark for the personal loan eligibility will be raised to 55.

If the applicant of pension is a patient with a chronic disease and according to doctor’s certificate the life expectancy of the applicant is one year or less than that, the person can take retirement at any moment he/she desires and can take the entire pension amount in 100% tax saving module. In case the applicant is a married person or has a civil partner 50% of the pension amount will be kept as survivor’s pension fund.

While retiring before the age scheduled for state pension, the availability of state pension will be nil. Or else if he wishes to carry on working he may receive lesser amount than the pre-decided amount because of the qualifying year criteria. Qualifying year is the tax year and tax is paid on the earning of that year. If a person decides to retire early, the qualifying years in his account will be fewer.

These days, many banks and financial institutions are also offering retirement plans. The amount as per their retirement plan is available to them in their banking account as per the plan for use. The account may be a regular savings account or any other type of bank account. The main criteria is to meet the aims of savings and investments.