The Early Retirement Reduction Buy-Out plan (ERRBO) allows you to retire before your normal pension age without your pension being reduced for early payment.
- What are the benefits of the ERRBO?
Effectively your Normal Pension Age would be reduced by up to 3 years (but now before the age of 65).
Normally if you retire before your Normal Pension Age your pension would be reduced in the region of 5% for every year you have taken it early (5.1% retiring 1 year early, 10.4% retiring 2 years early, 15.1% retiring 3 years early).
- How much does it cost?
The cost is based on your age when you start the ERRBO contract and how many years you are buying. Payments will be made monthly and will be a percentage of your pensionable earnings.
- How is the ERRBO taxed?
The ERRBO has no value for Annual Allowance purposes.
Your 'pension pot' for Lifetime Allowance purposes will be calculated as and when you take your NHS Pension benefits.
If you think the ERRBO might be a useful savings vehicle for you, then please get in touch on firstname.lastname@example.org or telephone 0117 9665699.