Early Retirement

Local Government Pension Scheme members can choose to retire and take their benefits at any time between age 55 and 75.  If you choose to retire and take your pension earlier than your Normal Pension Age then your benefits will normally be reduced to reflect the fact that the pension is being paid earlier.

The amount of the reduction will be based on how many years before your Normal Pension Age you draw your benefits.  The current reductions are shown below.  These national reduction factors are set by the Government and can change from time to time.  The Government last changed the reductions on 3 July 2023.  

 

Reductions to reflect the fact that the pension is being paid earlier
Years EarlyPension ReductionLump Sum (for membership to 31 March 2008)
1

4.9%

1.7%

2

9.3%

3.3%

3

13.5%

4.9%

4

17.4%

6.5%

5

20.9%

8.1%

6

24.3%

9.6%

7

27.4%

11.1%

8

30.3%

12.6%

9

33.0%

14.1%

10

35.6%

 15.5%

11

39.5%

N/A

12

41.8%

N/A

13

43.9%

N/A

 

Any estimates of benefits you receive from Bedfordshire Pension Fund will use the factors in place at the time the estimate was produced.  It is possible that the factors may change between the time you receive the estimate and the date when you choose to have your pension benefits put into payment.

If you choose to take your benefits before your Normal Pension Age then your pension will be reduced in line with the national factors that apply at the time your benefits are put into payment.

 

The Government has announced that the earliest age you can take your pension will increase from 55 to 57 from 6 April 2028.  Please go to our regulation changes page for more information.

 

If you paid into the scheme before 1 April 2014 then the benefits you built up before 1 April 2014 have a protected Normal Retirement Age of 65.  Some members may also have ‘Rule of 85’ protections which continue to apply.  Visit the national LGPS website for more information on the rule of 85.