The Government has announced the earliest age that you can take your pension will increase from age 55 to 57 from 6 April 2028. This will not apply to ill health retirements.
As a member of the LGPS you can look forward to a pension that is backed by the government and reviewed annually to be kept in line with the cost of living for the rest of your life.
When can I retire?
You can take your LGPS pension at any time from age 55* to 75, as long as you have met the two-year vesting period – however reductions will apply if you take your benefits before you reach Normal Pension Age.
Your benefits are paid in full if you choose to take them from your Normal Pension Age (NPA). For benefits built up from April 2014, your Normal Pension Age is linked to your State Pension age, but is at least age 65.
You must take your pension by age 75.
In cases of ill health, there is no minimum age limit at all.
The Government has announced the earliest age that you can take your pension will increase from age 55 to 57 from 6 April 2028. This will not apply to ill health retirements.
You can choose to take your pension when:
- You are age 55* or over
- You have met the two-year vesting period and
- You have left your job.
If you choose to take your pension benefits before your Normal Pension Age, they will normally be reduced. You can find out more on our How your pension is worked out page.
The reduction is based on the period between the date your benefits are paid and your Normal Pension Age. The earlier you take your pension, the bigger the reduction.
The current reductions for taking your benefits up to 13 years early are shown on the Early Retirement reductions table on the LGPS Member website.
The quickest way to check how much your annual pension could be reduced by, is to use the Benefit Projection tools on the 'My Pension' Portal. You can select any date from the age of 55 to your 75th birthday. The calculations will automatically apply any early retirement reductions, or enhancements, if you choose a different date to your Normal Retirement Age (that is default to your State Pension Age).
Your employer can agree not to reduce your LGPS benefits. This is a discretion and you can ask them what their policy on this is.
Flexible retirement is a way to move gradually into retirement. You can take flexible retirement when the following conditions are met:
- From age 55 onwards
- If you have met the two-year vesting period, and
- Only if your employer agrees.
Under flexible retirement, you reduce your hours or move to a less senior position and take some or all of the pension benefits you have built up. You must take any benefits you built up prior to 1 April 2008.
If you take flexible retirement before your normal pension age, your benefits may be reduced just as if you were retiring early.
Ask your employer about their policy on flexible retirement and what options they offer.
If you:
- Lose your job because of redundancy or business efficiency
- You have met the two-year vesting period, and
- You are age 55* or over
your LGPS benefits must be paid to you immediately.
If you leave after your Normal Pension Age, your benefits will be increased.
If you are under your Normal Pension Age, your main LGPS benefits will not be reduced for early payment. However, if you have bought any additional pension, this will be reduced because of early payment. This applies to any additional pension paid for by:
- Additional Pension Contributions (APCs)
- Shared Cost Additional Pension Contributions (SCAPCs)
- Additional Regular Contributions (ARCs)
If I am age 55 or older, when will I get an estimate of my retirement benefits?
As part of the redundancy / efficiency procedure, your employer will generally ask us to estimate the retirement benefits that would be payable to you IF the redundancy/efficiency were to go ahead.
Once we have received this request from your employer, we will send them an estimate, which they may share with you as part of any discussions regarding the termination of your employment.
We are not able to provide a redundancy/efficiency retirement quotation direct to members, so please do not request an estimate directly from us.
Once the redundancy/efficiency retirement has been confirmed by your employer, we will send you an estimate of your retirement benefits payable and the forms that you must complete in order for the accrued pension benefits to be paid to you. The benefits must be paid to you with effect from the day after leaving employment.
Please allow 15 working days from the day we receive the pay information from your employer before the estimate and claim form(s) are issued to you.
If you are paying or have paid Additional Voluntary Contributions (AVCs), we will have to contact your AVC provider to get a fund value of these benefits. This may mean that it takes longer to send you your estimate, but we will do this as quickly as possible.
What information will I receive if I am made redundant under age 55?
Once you have left your employment, we will write to you informing you of the value of your deferred (frozen) benefits. Your retirement benefits will remain deferred until you reach your Normal Pension Age (State Pension Age or 65 if later), when they will be paid unreduced. You can elect to take reduced benefits from age 55.
You may also be eligible for your deferred benefits to be paid to you actuarially unreduced due to ill health reasons. For further details please refer to the LGPS Member website.
If you keep working after your normal pension age you will continue to pay into the Scheme, building up further pension.
You can take your pension when any of the following apply:
- You retire
- You reach the eve of your 75th birthday
- You have your employer's permission for flexible retirement.
If you take your benefits after your normal pension age, in addition to the extra membership you build up in the Surrey Pension Fund Scheme, your pension built can be increased because it is starting later than expected.
For information on how to take your deferred pension, visit Taking your pension on the LGPS member website.
How can I get an estimate of my retirement benefits?
You can get an estimate of your retirement benefits by using the Benefit Projector on the 'My Pension' portal.
Remember, you can give up some of your annual pension to either provide a lump sum or to increase your standard lump sum entitlement, up to the maximum of 25% of your pension pot. The 'My Pension' portal will provide you with details of this.