Early retirement scheme needs careful planning

SATISFYING expectations in the next round of the EU Early Retirement Scheme for farmers will not be easy.

The scheme initially offered retirement at 56 with an annual pension of up to £10,000, for farmers who never contributed to a pension scheme. It was the envy of many other sectors, but the shine has worn off, and the scheme has left a trail of regrets among participants.

The ‘devil’ in the detail proved to be unpleasant medicine. Lack of indexation of entitlements resulted in substantial erosion of the pension. The regulations contained hidden difficulties for many farmers.