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% |
0.0% |
|
1 |
5.0% |
1.7% |
|
2 |
9.7% |
3.3% |
|
3 |
14.0% |
4.9% |
|
4 |
18.0% |
6.5% |
|
5 |
21.6% |
8.1% |
|
6 |
25.0% |
9.6% |
|
7 |
28.2% |
11.1% |
|
8 |
31.2% |
12.6% |
|
9 |
34.0% |
14.1% |
|
10 |
36.6% |
15.5% |
|
11 |
40.6% |
n/a |
|
12 |
42.9% |
n/a |
|
13 |
45.1% |
n/a |