Partial retirement
What is partial retirement?
In some circumstances you may take all or part of your pension while continuing to work. This is called “partial retirement”. You may only choose to do this if you reduce your annual rate of pensionable earnings by at least 20%, for example by reducing your hours. The reduction must be permanent.
Before taking some of your pension early you need to understand the implications for your pension on final retirement as well as the impact on your income now. You must read the booklet 'Partial retirement - a guide for scheme members'. Our calculator may help you to see the effect on your income now and in the future. You will need to know (or estimate) the pensionable earnings of your current and planned job, and have details from your annual benefit statements to use this. See also the Pension Reform Newsletter 3 and associated Q & A.
Please note that your employer is not obliged to provide a job that will enable you to take partial retirement. You should note, too, that your pension may be reduced (abated) while you are working. You can read about abatement in our leaflet What is abatement? [PDF]
Can I take partial retirement before pension age?
If you meet the conditions, you can take partial retirement at any time from your 50th birthday (55 for anyone who joined after 6 April 2006, including all nuvos members). However, your pension will be reduced for early payment and will also be subject to abatement. See the calculator to show how this may affect your income.
You should note that once you have taken partial retirement, your pension will not be enhanced if you then have to retire on ill-health grounds before pension age. Similarly, if you were to die in service before pension age, any pension payable to your family would not be enhanced.
Who can take partial retirement?
partial retirement is available for nuvos members.
classic, classic plus and premium members will be able to take partial retirement from 1 March 2008.
partnership members can take their pension at any age from 50 (55 from 2010) to age 75 - you do not have to stop work or change your hours or pay to do so.
