Can I take my deferred benefit early?

You can elect to retire and receive your deferred benefits from age 55 onwards.

If you retire between age 55 and your normal pension age your benefits may be reduced to take account of their early payment and the fact that your pension will be payable for longer. 

The reduction is calculated in accordance with guidance issued by the Government Actuary’s Department.  The reduction is based on the length of time (in years and days) between the date your benefits are paid and your Normal Pension Age.  If you joined the Scheme before 1 October 2006 you may have some protections from reductions under the Rule of 85

As a guide, the percentage reductions, for retirements up to 13 years early are shown in the table below. Where the number of years is not exact, the reduction percentages are adjusted accordingly. 

Number of Years Paid EarlyPension ReductionLump Sum Reduction
1      5%            2%
1142%21% *
1245%21% *
1347%21% *

 *As automatic retirement grants were removed from the Scheme on 1 April 2009 and due to the protections in place regarding NPA, a Retirement Grant is paid from age 65 without reductions i.e. the early retirement reductions cannot exceed those that apply for 10 years early.

If you are aged 55 or over and wish to claim your deferred benefits, you should contact NILGOSC for a quotation.