You can choose to retire and take your pension from the LGPS at any time from age 55 to 75, provided you have completed a minimum of two years membership in the Scheme.
However, the Government has announced that the earliest age you can take your pension will increase from 55 to 57 from 6 April 2028. For more information, see the Pension age changes section.
The Normal Pension Age in the LGPS is linked to your State Pension Age, with a minimum of age 65. If the State Pension Age changes in the future, then this change will also apply to your Normal Pension Age for benefits built up after 31 March 2014.
If you do not know what your State Pension Age, the government provide an online tool to check your State Pension age
If you voluntarily leave your employment before, on or after your Normal Pension Age you can defer taking your benefits, but you must take them before age 75. If you take your pension after your Normal Pension Age, it will be paid at an increased rate to reflect late payment.
If you were a member of the LGPS before 1 April 2014 then you built up benefits in the final salary scheme. These benefits have a different Normal Pension Age, which for most people is age 65.
You may have to retire at your employer’s instigation. This could be because of redundancy or business efficiency or permanent ill health. Provided you have completed a minimum of 2 years Scheme membership and have reached your normal minimum pension age, you must take your LGPS pension straight away.
Reductions if you choose to retire before your Normal Pension Age
If you choose to retire before your Normal Pension Age, your benefits will normally be reduced because they will be paid for longer. Your benefits are calculated as set out in the How your pension is worked out section and are then reduced. How much your benefits are reduced by depends on how early you take them.
The Government sets the early retirement reduction factors. They can vary from time to time. The table below shows the reduction factors that are currently in force:
| Number of years paid early | Pension Reduction | Lump sum reduction (for membership to 31 March 2008) |
|---|---|---|
| 0 | 0.0% | 0.0% |
| 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% | not applicable |
| 12 | 41.8% | not applicable |
| 13 | 43.9% | not applicable |
If you were a member of the LGPS at any time between 1 April 1998 and 30 September 2006, some of your benefits paid early could be protected from the reduction if you have rule of 85 protection. You can find out more about rule of 85 protections in the section protection form pension reductions.
Choosing to carry on working after your Normal Pension Age
If you carry on working after your Normal Pension Age, you will continue to pay into the LGPS, building up further benefits. When you eventually retire you will receive your pension unless you choose to delay taking it. Your pension must be paid to you by age 75. Your pension will be paid at an increased rate because it will be paid for a shorter time.
