What if I retire early?
If you leave your job at age 50 or over, you can draw the whole of your pension straight away if you wish (subject to certain statutory conditions being met - see below).
- Your pension will be reduced because you and BA will have paid fewer contributions than expected to fund your Final Salary benefits and the pension will be paid for a longer period of time.
- The government raised the minimum retirement age to age 55 from 6 April 2010. Members of APS have some protection from this change (APS members who leave British Airways and draw all their pension benefits straightaway – including any AVCs and Scheme benefits from previous BA Schemes – can continue to retire from age 50 onwards). However, if an APS member opts out of the Scheme and remains in employment with BA, the earliest that pension benefits can be drawn is the earlier of the date employment with BA ends or the member's 55th birthday.
You can exchange part of your pension for a tax-free Lump sum on retirement
This is currently paid tax-free. HM Revenue and Customs sets a limit for the amount you can take. If you choose this option, there will be less money for your monthly pension.
You also give up the future annual increases on any pension you give up for cash and the pension is given up for life.
For more information on payment options, such as exchanging part of your pension for a tax-free Lump sum, see I'm thinking of retiring.