Early Retirement
You can choose to take your pension from age 55, but it will be reduced if taken before your Normal Pension Age (NPA). The government sets the reduction factors, which depend on how early you retire:
|
Number of years paid early |
Pension reduction |
Lump sum reduction (for membership to 31 March 2009) |
|
0 |
0.0% |
0.0% |
|
1 |
5.0% |
1.7% |
|
3 |
14.0% |
4.9% |
|
5 |
21.6% |
8.1% |
|
10 |
36.6% |
15.5% |
|
11 |
40.6% |
n/a |
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No reductions apply if:
- You retire at NPA
- You meet Rule of 85 protections and take benefits at your protected age
- You’re made redundant or retire for business efficiency after age 55 with at least 2 years’ membership – your pension is paid immediately and in full.
Flexible Early Retirement
From age 55, with employer agreement, you can:
- Reduce your hours or take a lower-grade job
- Draw some/all pension while still working and paying into the LGPS
