Example of retiring early
Stan is 64 when he decides to retire. His normal
pension age is age 65.
His benefits are:
Pension = £4,000 a year
Lump sum = £11,500
As he is retiring 1 year early his benefits are reduced.
The benefits he will actually be paid are:
Pension = £3,776 a year (a 5.6% reduction)
Lump sum = £11,166.5 (a 2.9% reduction)