Flexible retirement lets you reduce your working hours or move to a lower-graded post and, at the same time, take some or all your LGPS pension benefits you have built up so far. It can be a helpful option if you want to ease into retirement gradually, rather than stopping work completely.
Who can apply
You can usually request flexible retirement from age 55 (57 from April 2028) provided you have two years' membership in the scheme. Flexible retirement is not an entitlement - you must apply, and your employer must agree.
How does it work
For your employer to consider you for flexible retirement, you normally need a permanent change to your job, such as one or both of the following:
- a reduction in hours
- a reduction in grade (or a move to a post with lower pay)
Many employers require a minimum reduction (for example, a percentage drop in pay or hours).
Your employer must have a flexible retirement policy. Check the policy so you understand what qualifies for you.
If your employer agrees to flexible retirement:
- you will still draw your salary from your job on the reduced hours or grade
- you can continue paying into the LGPS, building up further benefits in the scheme if you want to
The pension you can take
With flexible retirement, you may be able to take:
- all your LGPS benefits built up to a certain date, or
- part of your benefits (depending on your employer's policy and our rules)
You must take all pre-2008 benefits.
If you take benefits before your normal pension age, the fund usually reduces them to reflect early payment. If you meet certain criteria, your employer may choose to waive all or part of the reduction, but this is not guaranteed. Ask your employer what their policy is.
Continuing to pay into the LGPS
If you flexibly retire and continue in LGPS employment, you can continue to pay into the LGPS and build up further pension in your ongoing role. You could end up with both:
- pension benefits you've already taken
- additional pension built up after your flexible retirement date
If you are eligible, your employer will automatically re-enrol you into the LGPS. If you prefer, you can opt out of the scheme after a flexible retirement.
