Full benefits are payable at your normal pension age which is your State Pension age (SPa), but is at least age 65. Find out what your SPa is at the GOV.UK website.
Early retirement is available but your benefits may be reduced for being paid early. You can retire and receive payment of your benefits at any time from age 55.
Under some pension arrangements you can draw down or withdraw cash from your pension however this does not apply to your LGPS pension. If your pension includes a lump sum, you must take it at the same time as your annual pension.
Member self service
You can calculate a projection for taking your pension from age 55 on member self service. Register or log in to member self service
Estimate
We send you an annual benefit illustration each year. This provides an illustration of the pension you have built up. It does not show reductions that may apply if you take your pension before your normal pension age.
When you are thinking of retiring you need a more accurate estimate. You must ask your employer to request this as they provide us with your pay details. If you do not know who your employer is, you should ask your line manager. When your employer requests an estimate, we write to you. If you need help understanding your estimate, please read the guide to your estimate documents.
Reductions
Your benefits may be reduced if you take them before your normal pension age. The reduction depends on how early you take your benefits.
The reduction is calculated in accordance with guidance issued by the Government Actuary's Department (GAD). We must use factors provided by GAD for calculations. These factors can change from time to time.
As a guide, the percentage reductions for early retirement are shown in the table below.
| Number of years paid early | Pension reduction | Lump Sum reduction (for membership to 31 March 2008) |
|---|---|---|
| 0 | 0% | 0% |
| 1 | 4.9% | 1.7% |
| 2 | 9.3% | 3.3% |
| 3 | 13.5% | 4.9% |
| 4 | 17.4% | 6.5% |
| 5 | 20.9% | 8.1% |
| 6 | 24.3% | 9.6% |
| 7 | 27.4% | 11.1% |
| 8 | 30.3% | 12.6% |
| 9 | 33.0% | 14.1% |
| 10 | 35.6% | 15.5% |
| 11 | 39.5% | 15.5%* |
| 12 | 41.8% | 15.5%* |
| 13 | 43.9% | 15.5%* |
Where the number of years is not exact, the reduction percentages are adjusted to include days.
* The maximum reduction applied to your automatic lump sum for membership to 31 March 2008 is 10 years as the protected normal pension age is 65 and the earliest you can retire is age 55. There is no automatic lump sum for membership after 31 March 2008 although you can convert some of your annual pension to a lump sum. Find out about converting your pension to a lump sum
Calculating reductions
The reduction is based on the length of time (in years and days) that you retire early. This is the period between the date your benefits are paid to your normal pension age. The earlier you retire, the greater the reduction.
If you were a member of the LGPS on 30 September 2006, some of your benefits paid early could be protected from the reduction if you meet the 85 year rule.
The number of years early used to determine the reduction applied to your benefits built up before 1 April 2014 is the number of years before your protected normal pension age which, for most members, is age 65.
Benefits built up after 1 April 2014 have reductions applied up to your SPa.
Avoiding reductions
You can reduce or avoid reductions by not taking immediate payment of your benefits on retirement. You can delay payment until a later date. If you decide not to take immediate benefits, the benefits will normally become payable at your normal pension age. You can defer payment beyond that age, although benefits must be paid by age 75. If you delay payment of your benefits beyond your normal pension age they will be increased accordingly to reflect late payment.
Your employer can agree to waive any reduction. You can ask them what their policy on this is.
Retirement process
Find out about the retirement process
Converting pension to lump sum
It is possible to convert some of your annual pension to provide an extra tax-free lump sum. Find out about converting some of your pension to a lump sum
Pre retirement course
We offer a free pre retirement course for those who have contributed to to the LGPS and are within 18 months of taking their pension. Find out about the pre retirement course
Change in legislation
The government announced that the earliest age that you can take your pension will be age 57 from 6 April 2028. Currently it is age 55. This does not apply to retirements on ill health which can be paid at any age.