22 Jan 2019, 17:12
It won't be 100% accurate but this should give you a good idea of what you'll get:
Using the figures from your last annual statement, just take 5% off both NRA60 & NRA65 figures for each year you want to take them early.
So if you want to take both at 55, your NRA60 will be reduced by 25% and your NRA65 by 50%.
Those reduction apply to both the pension and the lump sum if you choose to take one.
Also bear in mind if you're going to carry on working, then you'll probably have to pay tax on it aswell. In fact taking your pension early could see you facing a quadruple whammy!
1. A reduction in the total amount you receive from your pension over the rest of you life, and your spouses life after your death.
2. A further reduction of 20% income tax while still working.
3. If you opt out of RM pensions altogether, then you're giving up free money from RM and tax breaks from the government.
4. Your reduced pension is less likely to be enough to live on when you actually want to retire, which could mean forcing yourself to work longer.