If you choose to retire before your normal pension age, your benefits may be reduced as they will be paid for longer. How much your benefits are reduced by depends on how early you draw them.
| Number of Years Paid Early | Pension Reduction | Lump Sum Reduction |
|---|---|---|
| 0 | 0% | 0% |
| 1 | 5% | 2% |
| 2 | 10% | 3% |
| 3 | 14% | 5% |
| 4 | 18% | 7% |
| 5 | 21% | 8% |
| 6 | 25% | 10% |
| 7 | 28% | 11% |
| 8 | 31% | 13% |
| 9 | 34% | 14% |
| 10 | 36% | 16% |
| 11 | 40% | 16%* |
| 12 | 42% | 16%* |
| 13 | 45% | 16%* |
If you were a member of the Scheme on 30 September 2006, some or all of your benefits paid early could be protected from full reductions if you are a Rule of 85 protected member. This means that the level of reductions shown in the table above may not apply to all of your membership.
Your employer can agree to waive any reduction and turn on the Rule of 85, but they must have a policy on this. If you wish to have reductions waived please speak directly to your employer.
Voluntary Retirement Calculator – Tutorial
You can use the voluntary retirement calculator on your My NILGOSC Pension Online account to estimate what your annual pension and lump sum (if applicable) will be, by entering the date you would like to retire. You can run as many estimates as you wish and see the impact of giving up annual pension for a lump sum. The video below shows you how the calculator works.
Voluntary Retirement Calculator Video Transcript (96KB, PDF)