Early retirement refers to the option of early payment of benefits with actuarial reduction. Deferred benefits are payable without reduction from age 65 for AFPS05 and SPA (or age 65 if later) for AFPS15, but members can draw these benefits at any age from age 55 with actuarial reduction to allow for the early payment. However, pensions payable on a member's death to their spouse, partner or dependant are not reduced.

AFPS75 deferred pensioners with pre- and post-April 2006 service may have benefits payable from age 60 and 65 respectively. They have the option to bring age 65 benefits into payment early subject to actuarial reduction.

AFPS15 also allows for enhancement of pensions which are paid later than the earliest age at which they are payable without reduction. If the member is in service for the period over which the pension is delayed then an "in-service late payment supplement" is paid. If the member is not in service for the period over which the payment is delayed then a "late payment supplement" applies.

These factors should be used for members who were not in service over the period of delay and who are therefore entitled to a late payment supplement. There is separate guidance available regarding the in-service late payment supplement.

Pension credits and debits may also be adjusted if they come into payment earlier or later than assumed. However, the early and late retirement factors provided in this note should not be used for such circumstances. There are separate adjustment factors provided specifically for adjusting pension credits and debits. There are also separate adjustment factors provided for adjusting Annual Allowance offsets.