Early Retirement

It‘s possible to take your benefits before you reach your Normal Pension Age (NPA)The age at which you're eligible to claim retirement benefits without actuarial reduction. provided you’re age 55 or over and are leaving service. Your benefits will be Actuarially Adjusted Benefits (AAB)Pensions can be taken from the age of 55 (or earlier if due to ill-health). Where a pension is being paid out before the Normal Pension Age (NPA) for those benefits the amount is reduced using actuarial factors because it is being paid out for a longer period than if taken at NPA. to reflect that they’re being paid before you’ve reached your NPA.

If you’re currently in pensionable service then your employer has to agree that you can leave and take your benefits. If they don’t agree initially, they cannot withhold their consent for more than six months. Your benefits will be paid the day after you cease pensionable employment.

If you’re not in Pensionable ServiceService that is active and on which pension contributions are paid. then you can choose your retirement date but it must be six weeks after the date you sign your application form.

If you’ve benefits in both the Final Salary SchemeThe final salary arrangement is split into two categories: 80th
Those who joined the scheme prior to the 01/01/2007 entered the 80th section with a Normal Pension Age (NPA) of 60 60th
Those who joined the Scheme on or after the 01/01/2007 entered the 60th section with a NPA of 65. From 01/04/2015 new entrants join the career average arrangement. and Career AverageFrom 1 April 2015 the method of benefit accrual for new entrants or transitioning members became Career Average Revalued Earnings. This is a defined benefit pension where a fraction of pensionable earnings are banked each year and revalued annually on a compound basis. arrangements then you need to take all your benefits at the same time.

Take a look at the factors and guidance notes for more information about the Early Retirement factors. For a spreadsheet version please use this document.