Your deferred benefits increase every year in line with the cost of living whilst they are deferred. This is known as the pension increase and is shown on your annual deferred pension statement.

Your pension will continue to receive cost of living increases every year once it is paid to you.

Your benefits will automatically be increased each year in line with the cost of living when:

  • your benefits are paid on or after age 55
  • or if your benefits are paid before age 55 because of ill health (and you are permanently incapacitated from engaging in any regular full-time employment)

Otherwise, if you draw your benefits before age 55 you will normally have to wait until your 55th birthday for your first cost of living increase. Your pension will then be increased to the level it would have been, had it been increased each year.