You can request early payment of your deferred benefits anytime from age 55. If you opted out of the scheme and still work in that post, you must leave employment before we can pay your deferred benefit.
Reductions to your pension
If you choose to take your deferred benefits before normal pension age, your benefits may be reduced to take account of their early payment. How much your deferred benefits are reduced by depends on how early you take them.
The reduction is calculated in accordance with guidance issued by the Government Actuary from time to time. The reduction is based on the length of time (in years and days) that you retire early. It is the period between the date your benefits are paid and normal pension age.
As a guide, the percentage reductions for early retirement are shown in the table. Where the number of years is not exact, the reduction percentages are adjusted accordingly.
| 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%* |
* 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.
If you left the LGPS before 1 October 2006, some of your benefits paid early may be protected from the reduction if you meet the 85 year rule. Find out more about the 85 year rule
Process for early payment of deferred benefit
You complete an online form to apply for early payment of your deferred benefit. When we receive your online request, we write to you. We send you an estimate of your deferred benefits and a retirement declaration form. If you wish to proceed with early payment of your deferred benefit, you must complete the form and return to us. The form includes your bank details.
Apply for early payment of deferred benefit
You can apply for early payment of your deferred benefits if you are:
- age 55 and before normal pension age, and
- within 6 months of the date you wish to receive your early payment of reduced benefits,
Complete the request for early payment of deferred benefits form
Pre retirement course
If you are within 18 months of retirement, you may wish to attend our free pre-retirement course. Book 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.