Retirement

Retirement including capital costs, conversion of annual pension to lump sum, early retirement reductions, flexible retirement, ill health, redundancy.

Early retirement reductions

If a member retires earlier than their Normal Pension Age (NPA) their pension benefits will be actuarially reduced to reflect early payment of their pension. The percentage reductions from the age of 55 onwards are as follows:

Number of years early Annual Pension Lump Sum
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% N/A
12 41.8% N/A
13 43.9% N/A

The above actuarial percentage reductions are set by the Government Actuary's Department (GAD).

The current factors quoted in the above table are effective from 3 July 2023. If a member is retiring for reasons of Redundancy, Business Efficiency or Ill-health retirement the percentage reductions above will not apply. 

IMPORTANT: If a member is taking early voluntary retirement and they wish to release their pension before their NPA a written notice of three months must be provided to the pensions team. We can accept this over email info@berkshirepensions.org.uk