Taking Pension Early Can Mean Reduction

The Court of Appeal has overturned what was to many a surprising decision of the High Court and confirmed that when a company pension scheme member takes benefits early (at 60 rather than 65), the benefits may be subject to an actuarially-calculated reduction for the pension income taken early.

The Court ruled that the earlier decision meant those who took pensions early would benefit from a ‘windfall’ that was unfair on the company and the other pension scheme members.

The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.