The Government sets the early retirement reduction factors. They can vary from time to time. The table below shows the reduction factors that are currently in force:
|
Number of years paid early |
Pension reduction |
Lump sum reduction (for membership to 31 March 2009) |
|
0 |
0% |
0% |
|
1 |
5.4% |
2.3% |
|
2 |
10.4% |
4.6% |
|
3 |
14.9% |
6.9% |
|
4 |
19.2% |
9.1% |
|
5 |
23.1% |
11.2% |
|
6 |
26.8% |
13.3% |
|
7 |
30.2% |
15.3% |
|
8 |
33.3% |
17.3% |
|
9 |
36.2% |
19.2% |
|
10 |
39.0% |
21.1% |
|
11 |
43.0% |
n/a |
|
12 |
45.5% |
n/a |
|
13 |
47.8% |
n/a |