Example of taking my benefits early

Stan is 64 when he decides to retire and take his benefits. His normal retirement age is age 65.

His benefits are:

Pension = £4,000 a year

Lump sum = £11,500

As he is retiring 1 year early his benefits are reduced.

The benefits he will actually be paid are:

Pension = £3,796 a year (a 5.1% reduction)

Lump sum = £11,235.50 (a 2.3% reduction)