Changes to early retirement reduction factors
As a result of the Governments Budget announcement on 29 October 2018 a change to the early retirement reduction percentages now applies.
If you choose to voluntarily retire before your Normal Pension Age your benefits will normally be reduced to take account of them being paid early and for longer. How much your benefits are reduced by depends on how early you draw them.
The reduction is based on the length of time (in years and days) that they are paid early i.e. the period between the date your benefits are paid and your Normal Pension Age. The earlier you draw them, the greater the reduction.
The new factors have been equalised meaning that men and women will receive the same percentage reductions.
You can view the early retirement reduction percentages here. (Where the number of years is not exact, the reduction percentages are adjusted accordingly).