Retiring early

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Some people have to retire because of ill health or redundancy. Others choose to retire early.

Whatever your circumstances, you’ll be entitled to your pension (with an option to convert some into a lump sum). But bear in mind: if you choose to retire early, your benefits will be reduced to reflect this.

Retiring through ill health

If you retire through ill health, as long as you aren’t already taking your Age65 benefits, you’ll get:

  • The pension and lump sum you’ve built up so far
  • An extra pension. This is based on the size of your Additional Service Credit, and gives you a proportion of the CSDB pensionable salary you earned in the year up to your retirement
  • A lump sum worth three times this extra pension.

If you’re already taking your Age60 benefits, you’ll also continue to receive these at the same level.

Get in touch with us to find out more.


Retiring through redundancy

For members who are NOT in a grade represented by the CWU
If you’re made redundant after the age of 55, you’ll be paid pension and lump sum benefits straight away. You’ll get:

  • The pension and lump sum you’ve built up so far
  • An extra pension. This is based on the size of your Additional Service Credit, and gives you a proportion of the CSDB pensionable salary you earned in the year up to your retirement
  • A lump sum worth three times this extra pension.

For members who are in a grade represented by the CWU
If you’re in a CWU-represented grade, your employer will decide whether you’ll receive enhanced redundancy benefits. If not, your benefits will be set aside until you reach Normal Retiring Age or choose to take your benefits early.

Get in touch to find out more.


Taking voluntary early retirement

After you’ve reached 55, your employer may allow you to choose early retirement.

If you do retire early, your benefits will be calculated as if you were retiring at Normal Retiring Age. But they’ll be based on the actual number of years and days you’ve been building up your pension. Your pension and lump sum will be reduced because they’re being paid early.

How does it work?

The reduction to your benefits will depend on different things, such as the age you retire and the years in which you earned your benefits. Specifically:

  • For benefits you earned up to and including 31 March 2010: Your pension and lump sum will only be reduced if you retire before you turn 60. The reduction will depend on the number of full and partial years between your actual retirement date and your 60th birthday.
  • For benefits you earned after 31 March 2010: Your pension and lump sum will only be reduced if you retire before you turn 65. The reduction will depend on the number of full and partial years between your actual retirement date and your 65th birthday.

Get in touch to find out more.