Your Normal Pension Age (NPA) is the age at which you can take the pension you have built up in full. It is linked to your State Pension Age for benefits built up from April 2014 (but with a minimum of age 65).
You can find out your State Pension Age at www.gov.uk/calculate-state-pension
Your State Pension Age may change in the future and this would also change your NPA in the LGPS for benefits built up from April 2014.
You can choose to retire and draw your pension from the LGPS at any time from age 55 to 75, provided you have been in the scheme for two years. If you choose to take your pension before your Normal Pension Age it will normally be reduced, as it’s being paid earlier. If you take it later than your Normal Pension Age it’s increased because it’s being paid later. You must draw your benefits in the LGPS before your 75th birthday.
You may have to retire at your employer’s instigation, perhaps because of redundancy, business efficiency or permanent ill health. Your LGPS benefits, even in these circumstances can, provided you have met the two years vesting period in the scheme, provide you with an immediate retirement pension, which may even be enhanced.
If you voluntarily choose to retire before, on or after your Normal Pension Age you can defer drawing your benefits but you must draw them before age 75. If you draw your pension after your Normal Pension Age, your benefits will be paid at an increased rate to reflect late payment.
There are specific rules relating to each type of retirement – for more details download the guide below.
Reductions if you choose to retire before your Normal Pension Age
The reduction is based on the length of time (in years and days) that you retire early – i.e. the period between the date your benefits are paid and your Normal Pension Age.
| Number of years paid 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% | not applicable |
| 12 | 41.8% | not applicable |
| 13 | 43.9% | not applicable |
If you were a member of the LGPS on 30 September 2006, some or all of your benefits paid early could be protected from the reduction if you are a rule of 85 protected member. You can find out more about rule of 85 protections in the section protections for my pension.
Choosing to carry on working after your Normal Pension Age
If you choose to carry on working after NPA you will continue to pay into the LGPS, building up further benefits. Your benefits will be paid at an increased rate, with your pension being increased by between 0.010% and 0.022% and your retirement grant (lump sum) being increased by 0.001% for each day your benefits are drawn later than your NPA. You must draw your pension by no later than age 75.
What to do if you want to retire?
For a step-by-step guide of the things you need to do if you want to retire download the factsheet below: