Actuarially Reduced
Can anyone shed any light on what this actually means, ref retiring 'early' at 55? I looked at some Sunday rag annuity best buys, and the difference between 55 and 60 seemed to be about 12-15% less p.a. (for joint pension, index linked etc). Am I on the right lines?
I looked at the current RCAF scheme and, assuming you haven't served their full-pension-earning 25 years, they take off 5% per year that you leave before 60, down to a min age of 55; if you go before that, it's their equivalent of EDPs. ¼ less would be a bit harsh.
I dip out of the 10 year protection by 8 months, so this is all in anticipation of not being offered service to 60, from my current PAS piece of paper that says 55...
von K