# Retire at 62



## dariuscork (9 Mar 2009)

If you have 36 years pensionable service can you retire at age 62 without any penaltys,it is very confusing to me,thanks for any help.


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## Conan (9 Mar 2009)

Depends on the rules of your scheme. Normally if you retire early (assuming your Normal pension Age is 65) you will get a reduced benefit. Is your scheme a Defined Benefit or a Defined Contribution? 
The rules around early retirement should be covered in your scheme booklet. Start there.


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## dariuscork (9 Mar 2009)

defined benefit


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## LDFerguson (9 Mar 2009)

If your scheme allows it, you will be able to retire at age 62.  Your pension and lump sum will be proportionately reduced.  

For example, if your scheme provides for a full pension after 40 years' service and you retire 3 years early, you will get 37/40 of the pension and lump sum you would have got if you had stayed on until 65.


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## Conan (9 Mar 2009)

Just to be clear, if you retire early your pension calculation will reflect two elements:
- shorter service : 36/60ths rather than 40/60ths at age 65
- longer payment period: you will also probably have an "actuarial reduction" to reflect the fact that you will be paid the pension for 3 years longer

So (subject to your scheme rules) the early retirement pension might be:
37/60 x Pensionable Salary x Actuarial Reduction factor

It is impossible to say what the actuarila reduction factor is for your scheme, but for 3 years early it coule be circa 12%.

Your scheme booklet should cover this issue.


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## dariuscork (9 Mar 2009)

Can I ask is shift allowance taken into account.


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## StevieC (9 Mar 2009)

dariuscork said:


> Can I ask is shift allowance taken into account.


 
Probably not but again you'll have to refer to your scheme rules as it will define final salary.


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## leesider29 (19 Mar 2009)

My father is 57 and is looking to retire. He has a defined benefit pension. Going by previous posts he is entitled to a lump sum and/or pension payment less deductions for early retirement depending on the criteria of the pension which should be set out in the pension booklet.

On the face of it this should be an easy calculation ie he should get an answer within a week as to what his options are. Unfortunately he has been waiting 2 months for an answer and they are telling him that due to the market conditions that the pension fund of the company has been hit. Now under the defined benefit pension scheme is he still not entitled to his pension less the reductions set out in the handbook. Isn't this supposed to be the primary advantage of this type of pension for the employee?

They are also saying that this will have to go to a vote of the trustees.

My question is legally is he entitled to tell them that it is their problem and he should be receiving his pension as agreed in the terms and conditions set out in the pension booklet?? 

Thanks for any help


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## bongo2 (19 Mar 2009)

Hi Leesider,
DB schemes usually only permit early retirement subject to employer or Trustee consent. Your father's scheme booklet will clarify this. 

Very few Trustees are permitting early retirement at present as most DB schemes are not fully funded due to the fall in value of the funds the scheme assets are invested in.


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## leesider29 (19 Mar 2009)

Thanks for the reply bongo, well it seems it will go to a trustees vote so presumably it is in the rules that they can turn it down if they see fit, however should not the calculation of what he is due that would go before the trustees be easy to calculate?

This is the part I do not understand, how can they say there might be a reduced (having taken into account the reductions for early retirement) amount if it is defined benefit?


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## venice (19 Mar 2009)

this may answer you questions


http://www.cspensions.gov.ie/faq.asp


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## leesider29 (19 Mar 2009)

thanks venice but he is private sector (should have mentioned) so would the same rules qualify?


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## bongo2 (19 Mar 2009)

Are you sure that there are further reductions on top of the early retirement factor that will be applied? Transfer values are being reduced for most schemes, maybe that was what they were referring to.


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## leesider29 (19 Mar 2009)

Now you have me confused  let me look that up


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## dariuscork (24 Mar 2009)

bongo2 said:


> Are you sure that there are further reductions on top of the early retirement factor that will be applied? Transfer values are being reduced for most schemes, maybe that was what they were referring to.


Yes I would think that also.


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