When can I retire?
Choosing when to retire is a big decision. Whether you want to retire at your Normal Pension Age, continue working for longer, or need to retire early due to personal circumstances or ill health, the Scheme is here to support you.
Currently paying in
Taking your pension at Normal Pension Age
You can take your pension in full when you reach your Normal Pension Age (NPA).
Your pension is based on:
- your final pensionable salary
- your pensionable service
- the Scheme rules at the time you retire
Benefits build up at a rate of 1/80th of pensionable salary for each year of service, up to a maximum of 40 years. Under the Scheme rules, a member can’t accrue more than 40 years of pensionable service which means anything over 40 years would not count while calculating your benefits. If you’d like, you can still contribute to the Scheme which makes sure you keep benefits such as your death in service lump sum.
Important to know
The earliest age you can normally access your pension is currently age 55, rising to age 57 from 2028. This is known as the minimum pension age and is different from your Scheme Normal Pension Age. If you paid into the Scheme between 10 December 2003 and 6 April 2006, you may have a protected minimum pension age of 50.
Retiring early
You may be able to retire before your Normal Pension Age from age 55 (rising to age 57 from 2028).
If you choose to retire early:
- your pension will usually be reduced
- this reflects that it is expected to be paid for longer
- your employer may require a minimum notice period for you to retire early
What this means for you
Retiring early may affect the amount of pension you receive throughout retirement, so it’s important to consider your options carefully.
Retiring later
If you’re continuing to work beyond your Normal Pension Age you will continue to build pension benefits:
- you can continue building pensionable service up to a maximum of 45 years
- benefits will become payable from age 75
If you continue in the Scheme beyond your Normal Pension Age, pensionable service can continue to build up to a maximum of 45 years.
Taking your pension while still working
With the consent of your Employer, you may opt to start taking your pension whilst continuing to work, either full-time or part-time. You can choose to start taking your pension at any time after the minimum pension age which is currently age 55, rising to age 57 from 2028.
You should be aware:
- you will need to opt-out and cease being a contributing member of the Scheme in order to start taking your pension
- the Scheme rules do not permit partial retirement, all benefits payable must be taken
- as you will no longer be a contributing member of the Scheme and will become a Pensioner member, the death benefits payable will be those payable to a Pensioner member
- it is not possible to re-join the Scheme for your future service
- you may wish to consider your personal tax situation as your pension is taxed as earned income in the same way as your salary
Retiring due to ill-health
The Scheme provides support if you become permanently unable to continue working because of ill health or incapacity.
If approved by your employer, the Trustee will consider the application following advice from their appointed registered medical practitioner. If approved, you’ll be able to take your pension early due to ill-health. The pension will include enhancement of your pensionable service to your NPA and will not be reduced for early payment.
Example of member retiring due to ill-healthJohn is 45 and has been a member of the Scheme for 10 years. His pensionable salary is £40,000. Because he is retiring due to ill health before his normal pension age of 65, an enhancement is added to help reflect the pension he might otherwise have built up had he remained in work.
What this means for John
If John has AVCs with Standard Life or Utmost he will also have the option to take all or part of his fund as tax-free cash or transfer the AVC fund to another pension arrangement. John will also have the option to commute some of his pension for additional cash without affecting the death benefits payable to his family.
Please note that the trustees have a responsibility to review all ill health pensions in payment annually until you reach your Normal Pension Age. Improvement in health or a return to paid employment should be reported to the Scheme Administrator immediately.
No longer paying in
Taking your pension at Normal Pension Age
If you’ve left the Scheme but kept your benefits within it, the administrator will contact you a few months before you reach your Normal Pension Age (NPA) about taking your pension.
Your pension is based on:
- your pensionable salary calculated at the time you left the Scheme
- your pensionable service built up before leaving, to a maximum of 40 years
- increases that have been added to your pension since leaving to help protect against inflation
- the Scheme rules at the time your pension becomes payable
Taking your pension early
The earliest age you can normally access your pension is currently age 55, rising to age 57 from 2028. This is known as the minimum pension age and is different from your Scheme Normal Pension Age.
If you choose to retire early:
- your pension will usually be reduced*
- this reflects that it is expected to be paid for longer
*Early retirement factors are agreed and reviewed regularly by the Trustee. This is to ensure the actuarial factors used by the Scheme meet the requirements of legislation and the Scheme rules, and where appropriate considering advice from its professional advisers and relevant economic, demographic and other financial factors at the time. Latest factors were implemented September 2024.
What this means for you
Retiring early may affect the amount of pension you receive, so it’s important to consider your options carefully before deciding. You can get an early retirement quote from the Scheme Administrator by using the online portal or contacting the administrator directly.
If you paid into the Scheme between 10 December 2003 and 6 April 2006, you may have a protected minimum retirement age of 50. The administrator can confirm your details if you were in the Scheme at that time.
Retiring due to ill-health
The Scheme provides support if you become permanently unable to continue working because of ill health or incapacity.
The Trustee will consider the application following advice from their appointed registered medical practitioner in receipt of evidence. If granted, you will be able to take your pension early on ill-health grounds. The pension will not be reduced for early payment.
Please note that the Trustee has a responsibility to review all ill health pensions in payment annually until you reach your Normal Pension Age. Improvement in health or a return to paid employment should be reported to the Scheme Administrator immediately.
Retiring later
There is no provision in the Scheme to defer taking your pension after reaching Normal Pension Age (NPA).
If commencement of your pension is delayed beyond your NPA, the benefits payable will be as they were at NPA with the addition of any annual increases that would have been added to your pension during the period from NPA to the payment commencement date. Pension arrears due from your NPA to the payment commencement date will be paid with the first pension instalment.
Please note, a maximum of 6 years’ pension arrears can be paid; pension instalments due more than 6 years ago are not payable under the Scheme’s forfeiture rule.