You can retire before your normal pension age but your pension may be reduced.
Early retirement at your request
You can choose to retire early from age 55. If you choose to retire before your normal pension age your benefits are likely to be reduced because they will be paid earlier and for longer.
How much your benefits are reduced depends on how early you retire.
Please contact us if you want to talk about your individual situation.
Early retirement through redundancy or business efficiency
If your employer makes you redundant or retires you in the interests of business efficiency and you are aged 55 or over (for some members this will be age 50 or over), your pension will be paid immediately without reduction.
Stan is 64 when he decides to retire. His normal pension age is age 65.
His benefits are:
Pension = £4,000 a year
Lump sum = £11,500
As he is retiring 1 year early his benefits are reduced.
The benefits he will actually be paid are:
Pension = £3,784 a year (a 5.4% reduction)
Lump sum = £11,235.50 (a 2.3% reduction)