Pensions Bitesize - September 2026 - What happens if you leave before retirement age?

What happens if you leave before retirement age?

If you leave your job before retirement and you meet the two year qualifying period, you will have deferred benefits in the LGPS. Your deferred pension will increase each April in line with the cost of living.

Your deferred pension will be held in the LGPS until:

1 - You choose to take your deferred pension. You can generally take your deferred pension at any time between age 55 and 75. The earliest age you can take your pension will increase to 57 from April 2028.

2 - You transfer your deferred benefits to another pension arrangement.

3 - You die - A death grant will generally be paid if you die as a deferred member. Your partner and children may also  receive dependants’ pensions.

If your service is less than two years, you won't be entitled to deferred benefits, but you may instead qualify for a refund of your contributions, depending on any prior service with different local authorities.

You can use the deferred benefit calculator on your Member Self Service account to calculate the value of your pension if you were to leave your employment and take it at a later date by visiting  https://pensions.lambeth.gov.uk/.

To find out more about how your pension account works and what happens if you leave the LGPS before you take your pension please view this bitesize video:-

How your pension works (1 minute 40 seconds)

This video is available from the dedicated national LGPS member website, www.lgpsmember.org, where you can find out everything you need to know about the LGPS.

Please visit the dedicated national LGPS member website, www.lgpsmember.org, where you can find out everything you need to know about the LGPS.