12 Sep 2018, 17:58

Hi, I will be grateful if someone can help with the following question.

I am a deferred member having left RM in 2002 for a section A/B pension which I am due to receive when I am 60. I am currently 56 years of age and will be 57 next February. I received my annual pension statement yesterday and I only just realised that I have been able to take my pension and lump sum since I was 55, albeit at a reduced rate.

I have read on these forums that if I take my pension and lump sum early that I will receive a reduced rate of 5% for every year before I am 60. So my question is, are part years pro-rata? e.g. I am currently 56 and a half, so will I therefore receive a reduced rate of 17.5% (5%+5%+5%+2.5%), or will the reduced rate be 20% until my 57th birthday when the reduced rate will become 15%?

Any help will be appreciated.

I am a deferred member having left RM in 2002 for a section A/B pension which I am due to receive when I am 60. I am currently 56 years of age and will be 57 next February. I received my annual pension statement yesterday and I only just realised that I have been able to take my pension and lump sum since I was 55, albeit at a reduced rate.

I have read on these forums that if I take my pension and lump sum early that I will receive a reduced rate of 5% for every year before I am 60. So my question is, are part years pro-rata? e.g. I am currently 56 and a half, so will I therefore receive a reduced rate of 17.5% (5%+5%+5%+2.5%), or will the reduced rate be 20% until my 57th birthday when the reduced rate will become 15%?

Any help will be appreciated.

12 Sep 2018, 18:21

Very interesting

12 Sep 2018, 18:43

JKelly wrote:Hi, I will be grateful if someone can help with the following question.

I am a deferred member having left RM in 2002 for a section A/B pension which I am due to receive when I am 60. I am currently 56 years of age and will be 57 next February. I received my annual pension statement yesterday and I only just realised that I have been able to take my pension and lump sum since I was 55, albeit at a reduced rate.

I have read on these forums that if I take my pension and lump sum early that I will receive a reduced rate of 5% for every year before I am 60. So my question is, are part years pro-rata? e.g. I am currently 56 and a half, so will I therefore receive a reduced rate of 17.5% (5%+5%+5%+2.5%), or will the reduced rate be 20% until my 57th birthday when the reduced rate will become 15%?

Any help will be appreciated.

Yes, your reduced pension and lump sum will be reduced on a pro-rata basis for part years.

Last edited by RobertT on 13 Sep 2018, 05:16, edited 1 time in total.

12 Sep 2018, 20:09

Yes, your reduced pension lump sum will be reduced on a pro-rata basis for part years.

Thank you for your prompt reply.