Early retirement reduction factors
Depending upon the length of time between the date that you elect to draw your deferred benefits and your NPA, your benefits will be subject to a reduction in line with the table below:
Please note that the reduction percentages are supplied by the Government Actuary's Department (GAD).
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.
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 |
If it is your intention to claim your Deferred pension before your Normal Pension Age (NPA) we require three months notice. You can email your notice to info@berkshirepensions.org.uk