Early Retirement Reduction Factors
1st December 2025
Early Retirement Reduction Factors
If you choose to take your pension benefits before your Normal Pension Age, they 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 factors are set by the Government and are reviewed periodically. The table below provides the percentage reductions applicable from 3 July 2023 (Where the number of years is not exact, the reduction percentages are adjusted accordingly):
| Pension reduction (%) | Retirement grant reduction (%) | ||
| Years early | Males | Females | All members |
| 0 | 0 | 0 | 0 |
| 1 | 5.0 | 5.0 | 1.7 |
| 2 | 9.7 | 9.7 | 3.3 |
| 3 | 14.0 | 14.0 | 4.9 |
| 4 | 18.0 | 18.0 | 6.5 |
| 5 | 21.6 | 21.6 | 8.1 |
| 6 | 25.0 | 25.0 | 9.6 |
| 7 | 28.2 | 28.2 | 11.1 |
| 8 | 31.2 | 31.2 | 12.6 |
| 9 | 34.0 | 34.0 | 14.1 |
| 10 | 36.6 | 36.6 | 15.5 |
| 11 | 40.6 | 40.6 | N/A |
| 12 | 42.9 | 42.9 | N/A |
| 13 | 45.1 | 45.1 | N/A |