Deferring Retirement

If your normal retirement age is age 60 we will write to you with details of the options available shortly before you reach your Normal Retirement Age, this will include the option to defer your retirement to a later date.

If you choose this option your pension will be calculated based on your pension at age 60 increased by 2/3rds of one per cent for each complete month (8 per cent a year) that your pension remains deferred.

In addition to the bonus mentioned above your accrued pension will be increased each April in line with the increase in the Retail Prices Index (RPI) over the 12 months ending the previous September.

If you do not take up the option to defer your pension, your pension will be payable from your Normal Retirement Age.

Further information can be found in our Guide to Deferring Retirement.

Related FAQs

I have been offered the option to defer drawing my pension, how long to I have to decide?

You need to have made your decision and returned your Decision Form to the Fund Office within 6 months of your 60th birthday (62nd birthday if you left before 17 May 1990).

What are the benefits of deferring payment of my pension?

Your accrued pension will be increased by 8 per cent for each year that it is deferred on top of the standard Fund increases that apply to your deferred pension, this means that your pension when it commences will be higher than it would have been had you elected to draw the pension from age 60, however you need to balance this with how long you expect to be receiving your pension as well as your financial needs. You may wish to seek independent financial advice to assist you in making your decision.

What if I elect to defer my pension and then change my mind, can my pension payments be backdated to age 60?

Once you have made your decision it cannot be reversed, so if you were to find yourself in the position of needing to claim your pension within 6 months of age 60 having chosen to defer payment, the 8 per cent a year uplift would not be payable and your pension would be payable from the date on which you claim it.

What happens if I miss the deadline for deferring my pension?

The option lapses and your pension will be payable from age 60 regardless of when you decide to claim your pension.

Can I take the tax free cash sum at 60 and defer the residual pension to receive the 8 per cent a year uplift on the residual pension?

No, there is no option to draw the tax free cash sum and defer the residual pension.

If I elect to defer my pension, when will it be payable?

The pension will be payable from the date you elect to claim it, however if you joined the Fund on or after 1 June 1989 your pension must be paid no later than your 75th birthday.

If I elect to defer my pension, will I still get the variable pension option when I claim my pension?

The variable pension option is only available when retirement is more than 6 months before you reach State Pension Age, once you are within 6 months of State Pension Age or if you have passed your State Pension Age, the variable pension option is no longer available.

If I elect to defer payment of my pension and die before claiming my pension, what benefits are payable?

The benefits payable would be based on your deferred pension with the late retirement uplift.

Does the late retirement uplift count towards my Pensions Input?

No, as the late retirement uplift is set out under the Fund Rules, the uplift along with the Fund pension increases does not count towards your pensions input.

Will online quotations take into account the late retirement uplift?

Online quotations through our Pension Web Portal will only reflect the late retirement uplift once you have elected to defer payment of your deferred pension.

I opted out of the Fund and am still employed by TfL, why am I not being offered the chance to defer payment of my pension and receive the late retirement uplift?

The Fund Rules specifically exclude members who have opted out of the Fund from electing to defer payment of their deferred pension if they are still in TfLs employment on reaching age 60.