From: Norman Wells 
Newsgroups: uk.finance
Subject: Re: how much reduction is typical for early retireees pension?
Date: Wed, 20 Jun 2007 09:17:04 +0100
Bytes: 1863

In message , 
Johndigits  writes
>What is the typical sort of percentage reduction (abatement) that someone
>would suffer if they took their pension early...
>
>e.g. Joe's pension age is 60 with his company scheme, but he's been reading
>uk.finance for years and has salted away lots of savings. He now wants to
>retire early, but his company scheme have quoted him an abatement of 20% if
>he starts taking his pension at 55 instead of 60.
>
>Is this a typical or fair reduction?

I think abatements in the range 4-5% are perfectly typical.  If you 
think about it, a pension paid at 55 might typically have to be paid for 
25 to 30 years.  A pension paid at 60 would only have to be paid for 20 
to 25 years, ie about 20% less time, so the pension can be about 20% 
higher.

-- 
Norman Wells