Increasingly, people are tending to work on beyond their scheme pension age and wish to move gradually into retirement rather than moving overnight from full-time work to full-time retirement. A gradual transition can work well for the individual as it allows them (and their families) to adjust to a new lifestyle; if it can be achieved by staying with the same employer in a reduced capacity it can also help the employer retain skills while making space to bring on other people. A gradual move into retirement may sound like a good idea but it may not be affordable for many people, it is important that you understand the implications in drawing all or part of your pension earlier than you may have previously considered.
Partial retirement will allow people who agree with their employer to "reshape" their job, so that their earnings reduce by at least 20%, to draw some or all of their RCPS pension and remain in work. It's up to you to liaise with your employer regarding reshaping your job. It could mean reducing your hours, changing your job content or moving to another role in the organisation. But your pensionable earnings must reduce by at least 20% and the change must be permanent.
Please note that your employer may not be able to agree your request to reshape your job. Where your employer can agree to reshape your job they may require you give a minimum period of notice before the change takes effect. Also, you should note that your pension may be reduced (abated) while you are working. You can read about abatement in our leaflet 'What is abatement?'
As mentioned above, before taking some or all of your pension early, you need to understand the implications for your pension on final retirement as well as the impact on your income at the time of partial retirement. You must therefore read 'Partial retirement - A guide for scheme members'.
We strongly recommend that you obtain an estimate from JSS for Partial retirement before you make any decision.
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