taking DB early calculation

A_T

many thanks for all the very helpful replies

Liquorice_Twirls

These reductions are worked out by Actuaries so that as an average across the population of people taking the pension at age 55 it will work out roughly the same up to their death as for people taking a higher amount at 60. Yeah some will live longer and some will for sooner but overall it will even out as far as the Fund is concerned. 

Now there will be people who die  within a short time of retiring, however currently the LGPS will pay the balance of 10 years worth of pension less what you’ve had already to your next of kin if you for under age 75 (5 years if you go on pension from deferred status). So it’s not like you lose everything dying early (well you do but not your NOK!)

I think the question is can you afford to and do you want to live on the lower amount now? It’s a long time till your state pension will kick in. 

Bobinyorkshire

When I looked at mine (NHS - mainly 1995) the reductions only impacted after 79 years of age; some 12 years after the SP kicked in. Also, the lump sum could be used to fill the gap if you do not have plans for it