Understanding student loan write-off at retirement age, outstanding balances, and pension freedom from loan deductions
Under Plan 5, student loans write off 40 years after the April you first became eligible to repay. Graduate 2027, write-off April 2068—age 61-62 for typical students. Most moderate earners carry student loan debt into retirement, which writes off automatically. Your pension is then fully yours.
Plan 5 write-off at 40 years means you reach retirement (~65) while still owing. At 65, repayments cease (no earned income), and loan writes off shortly after. Outstanding balance—£10k, £50k, £100k—all wiped. Your state pension and private pension are yours completely, no loan deductions.
This is why most moderate earners shouldn't worry about total debt size. Whether you owe £45k or £75k at retirement, both write off. You paid the same 9% above threshold throughout your working life. Total debt number is largely irrelevant for write-off-bound graduates.
UK Education Policy Specialist
With over 15 years of experience in UK education policy and student finance, Dr. Sharma founded Student Loan Calculator UK to help students navigate the complex world of student loans.