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Early retirement

You can retire and receive your benefits at any time from age 55 onwards and you do not need your employer’s permission.

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 EarlyPension ReductionLump Sum Reduction
 *As automatic retirement grants were removed from the Scheme on 1 April 2009 and due to the protections in place regarding Normal Pension Age (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 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

Read transcript (83KB, PDF)
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