You can currently retire and use your Retirement Account to purchase benefits at any time from the age 55. You may be able to request early retirement on the grounds of ill health before the age of 55. See ill health early retirement for more details.
If my expected retirement age is 65 then does it matter if I take my Pension sooner?
Your Pension savings are likely to be lower than if you took your benefits from the age of 65 because you would have had less time to add more contributions into your retirement account. Equally, if you choose to buy an income for life, the income you get is likely to be lower than had you not retired early. This is because it is expected to be paid for a longer period and therefore is more expensive to purchase.
What if I want to retire later?
The law used to require you to take your benefits no later than your 75th birthday. Although this has now changed, the Trustee will contact you prior to your 75th birthday about putting your benefits into payment or transferring them outside of the Plan.
What happens if I don't select my expected retirement age?
If you don't make an active choice, the Plan will assume you wish to retire at age 65.
If you choose a Lifestyle retirement option
Under the Lifestyle option you need to select a target retirement age. To find out more about theLifestyle option, see Investment options.
To update your expected retirement age, please contact Standard Life.
For the purposes of calculating and paying your pension under the Plan, your Normal Pension Age is age 60.
Minimum retirement age
The minimum pension age is the earliest age you can choose to retire and start receiving your pension. Effective from 6 April 2010 this changed from age 50 to age 55. However, as an ex-final salary member, you have an unqualified right to early retirement. You will therefore continue to be able to take early retirement benefits from age 50, provided certain legal conditions are met.
These are that:
- You must become entitled to all of your benefits under the Plan at the same time. We expect that this would be the case for most people. However, if you have built-up other benefits under the Plan (e.g. additional voluntary contributions and DC benefits) then if you want to take your final salary benefits before age 55, you must draw all of these other benefits from the Plan at the same time; and
- You must not become employed by any employer participating in the Plan after you become entitled to your early retirement benefits. In other words you can’t take your pension early and keep working for Telefónica (flexible retirement).
If you retire from the Plan on or after your minimum retirement age you may take an immediate pension subject to your pension not being less than any Guaranteed Minimum Pension (GMP). The Plan Administrators will be able to tell you more.
Should you draw your pension prior to your 60th birthday it will be reduced to make allowance for the fact that it is being paid earlier and so will be paid for longer.
Maximum retirement age
If you are considering delaying your retirement, you will have to take your benefits no later than your 75th birthday or move them out of the Plan.
Our intranet pages provide more information on your employment rights.
You can currently retire and use your Retirement Account to purchase benefits at any time from the age 55. You may be able to request early retirement on the grounds of ill health before the age of 55. See ill health early retirement for more details.
If my expected retirement age is 65 then does it matter if I take my Pension sooner?
Your Pension savings are likely to be lower than if you took your benefits from the age of 65 because you would have had less time to add more contributions into your retirement account. Equally, if you choose to buy an income for life, the income you get is likely to be lower than had you not retired early. This is because it is expected to be paid for a longer period and therefore is more expensive to purchase.
What if I want to retire later?
The law used to require you to take your benefits no later than your 75th birthday. Although this has now changed, the Trustee will contact you prior to your 75th birthday about putting your benefits into payment or transferring them outside of the Plan.
What happens if I don't select my expected retirement age?
If you don't make an active choice, the Plan will assume you wish to retire at age 65.
If you choose a Lifestyle retirement option
Under the Lifestyle option you need to select a target retirement age. To find out more about the Lifestyle option, see Investment options.
To update your expected retirement age, please visit Telefónica Rewards.
