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Retiring early at your own choice, 60 onwards

A 60mph speed limit sign

All members (minimum of 2 years in the LGPS required) have the right to retire early at their own choice from 60 onwards even if this is before their normal pension age. This may may sound like an interesting opportunity, but be very careful. Because you are choosing to draw your benefits early, they will normally be reduced by a percentage to take account of the fact that we are paying them for longer.

What reduction will I face?

It depends how far off your normal pension age you are choosing to retire. This is:

  • Age 65 for any pre April 2014 benefits, and
  • Age 65 (or your State pension age if later) for any benefits you build up after April 2014.

Let’s say you retire at 60, and your State pension age is 66. You would be drawing your pre 2014 benefits 5 years early (5 years before 65) and your post 2014 benefits 6 years early (6 years before 66).

Early retirement reduction factors

It isn't straightforward working out what early retirement factors might apply to you, but here is the table of factors for information:

Early retirement factors

What about the 85 rule?

This is a form of protection from early retirement reductions for members who joined before 2006 and have long service. If you retire early in this way it could mean smaller reductions.

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