Can I draw my deferred pension early?
Your deferred pension will be reduced because the pension will be paid earlier than your Normal Retirement Age.
The government raised the minimum retirement age to age 55 from 6 April 2010. Members of APS have some protection from this change (APS members who have left British Airways and draw all their pension benefits held in APS – including any AVCs and Scheme benefits from previous BA Schemes – can continue to retire from age 50 onwards). However, if an APS member has opted out of the Scheme but has remained in employment with BA, the earliest that pension benefits can be drawn is the earlier of: a) the date employment with BA ends or, b) the member's 55th birthday.
You can exchange part of your pension for a tax-free lump sum when you take your benefits.
This is currently paid tax-free. HM Revenue and Customs sets a limit for the amount you can take. If you choose this option, there will be less money for your monthly pension.
You also give up the future annual increases on any pension you give up for cash and the pension is given up for life.
Please contact us at least three months before your planned retirement date to ask for a retirement quotation.