Flexible retirement

Flexible retirement allows a member, who is 55 or over, to draw some or all of their pension benefits while still working and paying into the LGPS. Not all employers have policies that allow flexible retirement so you will need to contact your employer to check:

  • if flexible retirement is allowed by their policy, and
  • if they are prepared to offer it to you.

To be eligible for flexible retirement, you must:

  • be age 55 or over,
  • satisfy the vesting period of the LGPS,
  • reduce your hours or grade in line with your employer's flexible retirement policy,
  • have your employer's consent to take flexible retirement.

Note: The government sets the earliest age at which you can access your pension savings under normal circumstances. This is currently age 55 as indicated above - however it is rising to age 57 from 6 April 2028.

What benefits can I claim under flexible retirement?

If your employer agrees to flexible retirement, then you can draw all your pension benefits or only some of them (this is partial flexible retirement).

Partial flexible retirement

If your employer agrees to flexible retirement, you must draw:

  • all of the benefits that relate to any pre 1 April 2008 membership, plus
  • any additional benefits bought under an added years contract which commenced before 1 October 2006, plus
  • any benefits arising from an Additional Voluntary Contributions (AVC) contract that commenced before 13 November 2001.

You can choose to draw:

  • all, none or some of the benefits that relate to your membership from 1 April 2008 to 31 March 2014
  • all, none or some of the benefits that relate to your pension built up from 1 April 2014
  • all or none of any additional pension being purchased either through Additional Pension Contributions (APCs), Shared Cost APCs or Additional Regular Contributions (ARCs)
  • all or none of any additional benefits bought under an added years contract which commenced after 1 October 2006
  • all or none of any additional pension awarded by your employer
  • all or none of any benefits as a result of an AVC contract that commenced on or after 13 November 2001
How flexible retirement will affect your pension

Your pension will be paid from the date that you start working at your reduced hours or grade. You will receive the pension you had built up so far – see: What benefits can I claim under flexible retirement. However, your pension may be reduced if you take it before your normal pension age (NPA). See: Taking your pension early.

Extra pension arising from Additional Pension Contributions (APCs), Shared Cost APCs or Additional Regular Contributions (ARCs) will be reduced if you retire before age 65, even if your main LGPS pension is protected from reductions.

Following flexible retirement, your employer will enrol you into the LGPS again, and you will build up another pension which can be paid when you leave your job. The current LGPS rules will apply to the new pension membership – so it will be reduced if you choose to take it before the later of age 65 or your state pension age.

For information on how to apply for flexible retirement, see: Thinking of flexible retirement?

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