North East Scotland Pension Fund

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Early Retirement Reductions

Taking Your Pension Early & Pension Reductions

If you take your pension before your Normal Pension Age then your pension benefits may be reduced for early payment. The table below shows how much your pension and lump sum would be reduced depending on how many years earlier than your Normal Pension Age you retire. If you retire part way through a year, for example 3.5 years early, the percentages would be adjusted accordingly. These rates are set by Government and are reviewed regularly.

 No. of years paid early

 Annual Pension Reduction: Men

Annual  Pension Reduction: Women

 Lump Sum Reduction:  Unisex

 1 5.4% 5.4% 2.3%
 2 10.4% 10.4% 4.6%
 3 14.9% 14.9% 6.9%
 4 19.2% 19.2% 9.1%
 5  23.1% 23.1% 11.2%
 6  26.8% 26.8% 13.3% 
 7  30.2% 30.2%  15.3% 
 8  33.3%  33.3%  17.3%
 9  36.2%  36.2%  19.2%
 10  39.0%  39.0%  21.1%
 11  43.0%  43.0%  
 12  45.5%  45.5%  
 13  47.8%  47.8%  

You can see how taking your pension early will affect its value by logging onto your My Pension account and using the pension calculators.

 

Taking Your Pension Late & Pension Increases

If you delay taking your pension until after your Normal Pension Age, your pension will increase as it is being paid late. You can find out more about how late retirement increases are calculated in the Late Retirement page. 

 

Annual Pension Increases

Every April, once your pension is in payment, it will increase in line with the cost of living. If the cost of living is negative or zero, your pension for the year will remain the same.