When can I take my pension?
The Scheme’s Normal Retirement Age (NRA) is 65, which is the earliest age you can take your benefits from the Scheme without any early retirement reduction. Some members may have a different NRA in the Scheme.
You can continue to contribute into the Scheme for as long as you are employed, regardless of your age.
The minimum age at which you can access your pension is 55. This is known as early retirement and your benefits may be subject to early retirement reduction if you retire at this age or any date prior to your NRA. Please note that this minimum age is increasing to 57 from 6 April 2028.
If you are approaching or are over age 55, you may contact Capita for an estimate of your pension options. If you wish to retire from the Scheme, you should read the HR policy. This can be found on the HR A-Z on the RS Components intranet site. You will then need to complete the early retirement form, if appropriate.
Capita will send you a pack with details of your retirement options (either at your request or automatically as you approach the Scheme’s NRA). You should select the retirement option that best suits you and send your completed forms back to Capita with any other documentation they request in your retirement pack. If you are at all unsure of what options you should take regarding your retirement, we recommend you take professional financial advice. You can find an independent financial adviser at register.fca.org.uk
When and how you choose to take your pension can affect how much you receive due to retirement factors and how they are calculated.
We have explained how these work below:
Why is my pension reduced if I retire early?
If you choose to take your pension before your NRA, your benefits may be reduced due to Early Retirement Factors (ERFs). They are applied to reflect the longer period your pension will be paid, help ensure fairness for all members and protects the long-term sustainability of the Scheme.
What are commutation factors?
If you choose to exchange part of your pension for a lump sum, commutation factors determine how much cash you receive. These factors are reviewed regularly and are designed to reflect economic conditions and life expectancy assumptions.
Commutation factors determine how much of your pension you can exchange for a tax-free lump sum at retirement. These factors are set by the Scheme Actuary and reviewed periodically. Commutation factors may be updated to reflect changes in financial assumptions or longevity trends. Any changes are made with professional actuarial advice.
What happens if I choose to retire later?
If you retire after your NRA, Late Retirement Factors (LRFs) may be applied, and your pension may be increased to reflect the shorter expected payment period and continued investment growth. LRFs are designed to ensure fairness and consistency for members who defer retirement and are reviewed regularly.
What happens if I need to retire due to ill health?
If you are an active member of the Scheme, you may be entitled to retire early on the grounds of ill health.
If you wish to investigate the possibility of retiring this way, you can contact the HR Department.
All factors - ERFs, commutation, and LRFs - are set by the Trustee with advice from the Scheme Actuary. They are based on actuarial principles and reviewed regularly to ensure they remain appropriate.
You can request a retirement quotation from the Scheme administrator at any time. This will show your estimated benefits, including any adjustments for these factors.