Early Drawdown of Pension.

[Chirpy Chiefy]

Guidance required with the answers to a couple of questions, with just a little background first.

I am AFPS 05 and I am currently receiving EDP and will reach pension age in 5 years. I am working and in good health but am maybe looking to put myself out to stud!

So to the questions:

1. Is it possible to apply to draw down my pension early (not through ill-health)?
2. I understand that obviously as I wish to do this there will be a reduction both in the tax free lump sum and the annual payments, is there an easy calculation to do to roughly gauge this difference?
3. Would the EDP payments continue until they were due to stop at start of pension?
4. If all the answers work out, how do I do it?

Thanks for any help offered

 

[Vauxhall]

1. Yes. At any age from 55 onwards.
2. The pension will reduce by about 4.5% for every year it is taken early. The lump sum is reduced by about 2.9% for every year it is taken early. If you are an FPS member, my colleagues will do calculations so that you have the exact picture. www.forcespensionsociety.org
3. The EDP payments continue until you are 65 regardless of the pension coming into payment early.
4. You apply on an AFPS Form 8.

 

[Chirpy Chiefy]

Thank you Vauxhall, much appreciated!