Early retirement

Retiring before the normal retirement age will affect your pension. Here are the key points to consider.

Buying a temporary annuity

Your early retirement pension consists of your lifetime pension payment, the bridge benefit and, if you choose it, a temporary annuity.

A temporary annuity is an additional monthly payment you may buy to increase your monthly income until you turn 65 or die, whichever comes first. Although buying a temporary annuity will provide you with a higher monthly pension income before you turn 65, your lifetime pension income will be lower than it would be if you did not buy the annuity.

The younger you are when you retire, the higher the cost of the temporary annuity.