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 table below displays the reduction percentages in whole years, but any reduction applied to pension benefits will be calculated based on the member's exact date of retirement.
The Government Actuary's Department (GAD) changed the reductions on 13 July 2026. The reductions shown below apply to retirements from 1 August 2026.
| Number of Years Early | Pension Reduction % |
Lump Sum Reduction % |
|---|---|---|
| 0 | 0% | 0% |
| 1 | 5.0% | 2.0% |
| 2 | 9.6% | 3.9% |
| 3 | 13.9% | 5.8% |
| 4 | 17.8% | 7.6% |
| 5 | 21.5% | 9.4% |
| 6 | 24.9% | 11.2% |
| 7 | 28.1% | 12.9% |
| 8 | 31.1% | 14.7% |
| 9 | 33.9% | 16.3% |
| 10 | 36.6% | 18.0% |
| 11 | 39.0% | N/A |
| 12 | 41.4% | N/A |
| 13 | 43.6% | N/A |
The above actuarial percentage reductions are set by the Government Actuary's Department (GAD) and are subject to change at any time.
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