What if I retire early?
If you leave your job at age 55 or over, you can draw your pension straight away if you wish.
- Under Final Salary, 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.
- Under BAMPS, you can purchase a pension from NAPS or an insurance company using the money that has built up in your individual retirement account to this earlier retirement date.
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.
Under Final Salary, 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.