You can retire and get the full Local Government Pension Scheme benefits when you’re 65. You can choose to retire either younger or older; there are also provisions in place should you be forced to retire due to ill health.
Early retirement
If you’ve been a member of the scheme for at least two years, there are special circumstances when you may be eligible for your pension early:
If a Strathclyde Pension Fund approved doctor certifies that you are unable to work due to illness, you may be eligible to retire early due to ill health. Download A Guide to the Local Government Pension Scheme for the full details of how your payments will be calculated.
If you’ve been a member for less than a year, you’ll receive a refund of your payments. If you’ve been a member for between one and two years, you will receive an ill health grant of one month’s final pay per year of total membership. If a refund of your contributions is higher, you’ll get that instead.
You can write to your employer and choose to retire at the age of 60 onwards. You may also choose to retire between the ages of 50 and 59 but only if your employer agrees. Check your employer’s policy statement to see if they will allow you to do this.
If you voluntarily retire early, your pension and the lump sum due will be reduced. For more details on how this reduction is calculated, download A Guide to the Local Government Pension Scheme.
If you’ve been a member of the scheme for at least two years, you can consider flexible retirement. From the age of 50, if your employer agrees, you may choose to reduce your hours or move to a position with a lower grade and write to Strathclyde Pension Fund Office to draw the pension benefits you have already built up - while still receiving wages from your job.
You can also continue to contribute to the LGPS to further build up your benefits. Because you’re getting paid from your pension early, your Local Government Pension Scheme benefits and lump sum may be reduced.
For full details on the conditions for early retirement and how it may affect your benefits, download A Guide to the Local Government Pension Scheme.
Late retirement
You may choose to carry on working after the age of 65. You can choose to keep paying into the scheme and receive your pension:
- when you retire, or;
- when you choose - if your employer has agreed to allow you to take flexible retirement (see above), or;
- on the eve of your 75th birthday.
By receiving your pension after the age of 65 the lump sum and pension payments will be increased, because it will be paid for a shorter time. Your pension must be paid before your 75th birthday. For full details of late retirement download A Guide to the Local Government Pension Scheme.
Making the decision
Making the decision to retire early or late can be difficult if you don’t know exactly what benefits you’ll be due. Retiring early without enough in your pension can leave you short of money.
To help you make the decision, use the benefit calculator to estimate your final pension.
You can also get free independent financial advice as a member of the Local Government Pension Scheme - see the independent financial advice page of this site.
More information
You can download A Guide to the Local Government Pension Scheme, with full details of all the features and how to take advantage of them, to print out and read when you want. If you would rather receive a copy by post, contact us.
If you’ve got further questions, visit the employee member frequently asked questions page of this site.