Early Retirement

Early Retirement

Aged between 60 and 65

Provided you have at least three months total membership, you can voluntarily retire from office, at any time from age 60 onwards, and elect to receive your LGPS benefits.

Aged between 50 and 60

You may also retire and receive your LGPS benefits from age 50, but only if the Council gives their consent.

Penalties for early payment of LGPS benefits

If you voluntarily retire before age 65, your pension benefits will be reduced to take into account that they are being paid early. The reduction is calculated in accordance with guidance issued by the Government Actuary Department.

As a guide, the percentage reductions for early retirement are shown in the table below. Where the number of years is not exact, the reduction percentages are adjusted accordingly.

Years Paid Early  Pension Reduction (men) %  Pension Reduction (women) %  Lump Sum Reduction (both) %
0 0 0  0
1 5.6 5.2  2.9
2 10.8 10.1 5.7
3 15.5 14.6 8.5
4 20.0 18.8 11.2
5 24.0  22.7 13.7
6 27.8 26.4 16.3
7 31.4 29.8 18.7
8 34.7 33.0 21.1
9 37.7 36.1 23.4
10 40.6 38.9  25.6
11 44.2 42.2 N/A
12 47.6 45.5 N/A
13 50.9 48.6 N/A

However, if you joined the LGPS before 1st October 2006, you will have some protection from the reduction as follows:

  • If you will be age 60 or over by 31 March 2016 and choose to retire before age 65, then, provided you satisfy the 85 year rule (age and membership in whole years add up to 85) when you start to draw your pension, the benefits you build up to 31 March 2016 will not be reduced.
  • If you will be aged 60 between 1 April 2016 and 31 March 2020 and meet the 85 year rule by 31 March 2020, the benefits you build up between 1 April 2008 and 31 March 2020 will be reduced but not have a full reduction.
  • If you will be age 60 after 31 March 2016 and choose to retire before age 65, then, provided you satisfy the 85 year rule when you start to draw your pension, the benefits you build up to 31 March 2008 will not be reduced.

NB If you would not satisfy the 85 year rule by the time you are 65, then all your benefits are reduced if you choose to retire before 65