Retirement can be an exciting time as you finally get to stop working and make the most of the money you have been saving during your working life.
NORMAL RETIREMENT AGE
Your Normal Retirement Age will be agreed between you and your Employer, but is typically age 60.
You may be able to retire before Normal Retirement Age with your Employer’s consent. This may be because of ill-health or at any time after age 50, in which event you may either take your benefits immediately or leave your benefits in the scheme until a later date.
SERIOUS ILL HEALTH
If you are suffering from serious ill health where your life expectancy is very short, the Trustee may, in their absolute discretion, and where supported by medical evidence, agree to pay your benefit early as a lump sum.
You may be able to retire after Normal Retirement Age with your Employer’s consent.
If you continue working, you may with the consent of the CIT, delay payment of your benefits until you retire. Your Members Account will continue to be fully invested during this period.
Your Employer may, in its sole discretion, agree to continue paying contributions after your Normal Retirement Age in order to increase your benefits. In any event, you must take your benefits by age 70.
BENEFITS ON RETIREMENT
Currently, the CIT permits members at retirement to withdraw the value of their Members Account as a tax-free lump sum in Gibraltar. However, the lump sum may be taxable in your country of residence if this is outside Gibraltar.
You may elect to take a pension income from the scheme or purchase an annuity from an insurance company. This income will be taxable income in Gibraltar. However, if you are over age 60 the current tax rate is 0%.
Pension income may be treated as taxed income elsewhere.