Early retirement reductions changes 2023
The Government has recently reviewed the early retirement factors. The new factors are lower which means the reduction to your pension is less. The new factors apply to retirements from 3 July 2023.
If you choose to take your pension benefits before your Normal Pension Age, it will normally be reduced. 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 table below shows how much your pension will be reduced, depending on how early you decide to start receiving it.
Please see our retirement guide for further information about early retirement reductions.
Reduction factor table for benefits paid up to 13 years early
|
Years 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% |
N/A |
|
12 |
41.8% |
N/A |
|
13 |
43.9% |
N/A |