Retiring early

Some people have to retire because of ill health; 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). Please bear in mind that, if you choose to retire early, your benefits earned up to that point will be reduced to reflect the longer time for which they are expected to be paid.

While you remain an Employee Member, your employer may decide that you are no longer able to work because of a health condition. If they decide you meet the criteria for leaving the business due to ill health with income benefit, as long as you are not already taking your Age65 benefits, you’ll get the pension and lump sum you’ve built up so far, including the actual value of your Cash Balance benefit (i.e. not reduced to reflect early payment).

In addition, you may receive extra payments from the Company – please contact your HR Service Centre to find out more.

You may be able to take your benefits early from age 55 (or from age 57 with effect from 6 April 2028). If you do take them early, your pension will be reduced because it will be paid for longer. This means that your lump sum will be lower too.

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.

For more information contact the Pensions Service Centre – contact details below. 

Get in touch

1

For further help and information,
​contact the Pensions Service Centre:

  • Group 14 pensions.helpline@royalmail.com
  • Stroke 1 0345 603 0043
    Mon to Fri, 9.00am to 5.00pm
  • Fill 1 Pensions Service Centre,
    PO Box 5863, SHEFFIELD, S98 6AB
  • For questions about RMSPS
    benefits visit Capita at: royalmailsps.co.uk

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If you don’t know which section you’re in, contact the Helpline (contact details are at the bottom of the page); or If you recieve an Annual Benefit Illustration the section is noted on the front page.