Early retirement reduction factors 

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: 

Early retirement reduction factors

Number of years 

paid early 

Pension reduction 

Lump sum reduction (for membership to 31 March 2008) 

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 

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