Flexible retirement


  1. Choosing a gradual move into retirement
  2. Reduced payments
  3. How to take flexible retirement

Choosing a gradual move into retirement

Rather than continuing in your job to your *Normal Pension Age or beyond you may wish to consider the possibility of flexible retirement. From age 55, if you reduce your hours or move to a less senior position, and provided you have met the 2 years vesting period in the scheme and your employer agrees, you can draw some or all of the pension benefits you have built up, helping you ease into retirement. Your employer will have a policy on flexible retirement. You can ask your employer for details of their policy.

If your employer agrees to flexible retirement you can still draw your wages / salary from your job on the reduced hours or grade and continue paying into the LGPS, building up further benefits in the scheme.

Reduced payments

If you take flexible retirement before your *Normal Pension Age your benefits will normally be reduced for early payment.

If you were a member of the LGPS on 30 September 2006, some or all of your benefits paid early could be protected from the reduction if you are a rule of 85 protected member.

Your employer may, however, determine not to apply all or part of any reduction. You can ask them what their policy on this is.

If you receive payment of your benefits on flexible retirement, then your benefits will not be subject to reduction or suspension for re-employment whilst you are in a job with the employer that allowed you to take flexible retirement.

If you take flexible retirement after your *Normal Pension Age your benefits will be increased to reflect late payment.

How to take flexible retirement

You must speak to your employer as you will need their consent. 

Please note: The pension changes in April 2015 relating to a member accessing their 'pension pot' once the age of 55 is reached, are for Defined Contribution Pension Schemes only. The Local Government Pension Scheme, as a Defined Benefit Scheme, is not included in these changes.

*Normal Pension Age is linked to your State Pension Age for benefits built up from April 2014 (but with a minimum of age 65) and is the age at which you can take the pension you have built up in full.