The Normal Retirement Date for the Scheme is usually age 65. You can retire earlier than this, generally from age 55 (increasing to age 57 from 2028), and your pension would normally be reduced for early payment.
If you’re thinking of retiring early and you’re over 55, you can ask for an early retirement quote by emailing the Scheme Administrator (Buck).
If retiring early would reduce your pension to less than the minimum pension required by law, you may need to take a smaller tax-free lump sum or wait until a later date to start taking your pension benefits.
If you’re still working at Raytheon, and decide you’d like to start taking your pension – maybe because you want to reduce your working hours - you would need to ask both your Employer and the Trustees (where appropriate) if you can apply to start taking your benefits while you carry on working. This does mean however that the benefits you build up while you continue to work for Raytheon are likely to change.
If you still work for Raytheon, are unwell, and a doctor has said you’re unlikely to be able to work again, you may be allowed to take an ill-health early retirement pension. This is subject to you providing the evidence the Trustees require to support the claim and the Trustees would need to agree this with Raytheon.
If you retire early due to ill health and the Trustees and Raytheon agree that you meet the criteria, your pension won’t be reduced by as much as it would be if you were taking normal early retirement (or may not be reduced at all). However, the benefits payable on your death may be affected.
If the Trustees subsequently consider at any time that you’re no longer in ill health they may vary or suspend your pension.
If you no longer work for Raytheon you may apply for payment of your pension benefits before the minimum early retirement age, as a result of ill-health, as long as you have the necessary evidence to support your application. However, your pension will still be reduced for early payment.
A financial adviser will be able to help you understand the implications of retiring early and the tax that you’ll need to pay on your pension benefits based on your personal circumstances.