Thinking of Retiring

If you have completed the two-year qualifying period, you can normally take your pension at any time between ages 55 and 75.

Taking your pension before or after your Normal Pension Age (NPA) may affect the value of your benefits.

Important: The earliest age at which you can take your pension will increase from 55 to 57 from 6 April 2028. This does not apply to ill-health retirement.

What is the Process?

If you are planning to retire voluntarily, the process will usually involve the following steps:

1
Choose a retirement date
Decide when you would like to take your pension.
2
Request an estimate
Request an estimate of your pension benefits before making a decision.
3
Submit your application
Complete and submit the relevant forms to take your pension. Remember to let your employer know your resignation date.
4
Calculate your final benefits
Gwynedd Pension Fund will calculate your final pension benefits.
✓
Payment of your benefits
Your pension will start to be paid from your retirement date, provided that we have received a termination form from your employer.

Normal Pension Age (NPA)

Your benefits will be paid in full if you take them at your Normal Pension Age.

For benefits built up from 1 April 2014 onwards, your NPA is linked to your State Pension Age, with a minimum age of 65.

Most benefits built up before 1 April 2014 have a protected NPA of age 65.

Early Retirement

You can choose to take your pension early from age 55 (age 57 from 6 April 2028).

The earlier you take your pension before your Normal Pension Age, the greater the reduction will usually be.

The table below shows the current reductions for benefits taken up to 13 years early.

Years Early Pension Reduction Lump Sum Reduction*
0 0.0% 0.0%
1 5.0% 2.0%
2 9.6% 3.9%
3 13.9% 5.8%
4 17.8% 7.6%
5 21.5% 9.4%
6 24.9% 11.2%
7 28.1% 12.9%
8 31.1% 14.7%
9 33.9% 16.3%
10 36.6% 18.0%
11 39.0% N/A
12 41.4% N/A
13 43.6% N/A

* For benefits built up to 31 March 2008.

Your employer may decide not to apply some or all of any reduction. You should check your employer's policy if you are considering early retirement.

The 85 Year Rule

If you were an LGPS member at any time between 1 April 1998 and 30 September 2006, you may be protected by the 85 Year Rule.

You satisfy the 85 Year Rule when the combined total of your age and your LGPS membership equals 85.

If the rule applies to you, some or all of your benefits may be paid with a smaller reduction or with no reduction at all.

The rules are complex and the level of protection depends on your individual circumstances.

Late Retirement

You can choose to delay taking your pension beyond your Normal Pension Age.

In general, your benefits will increase because they will be paid for a shorter period.

Your pension must be taken by age 75.

Retirement Lump Sum

When you take your pension, you can normally exchange part of your annual pension for a one-off tax-free lump sum.