Your retirement options 

What happens when you retire?

The normal retirement age for the DB section is 60. Your pension will be paid as a monthly income, taxable under the PAYE scheme. You’ll also have the option to take up to 25% of the value of your pension as a tax-free cash lump sum when you retire. If you do this your monthly pension will be lower.  

If you made any additional voluntary contributions whilst building up your DB section pension, or have an individual account in the DC section, you can use these funds towards your cash sum instead of exchanging a portion of your pension.

What if I want to keep working at Schroders or elsewhere?

Not everyone is ready to retire when they reach age 60. Whether you remain an employee of Schroders after the age of 60 or not, you can delay the payment of your pension until a later date. A flexible option is also available where you can start to receive your pension and continue working for Schroders or another employer. You just need to remember that you’ll be taxed on your total income, so receiving a salary and a pension may push you into a higher tax bracket.



We recommend contacting Mercer in the first instance for guidance

If ill health permanently prevents you from continuing your employment with Schroders, you may be able to access your pension before the age of 55. If your illness is serious enough to reduce your life expectancy, you may also be able to receive a cash lump sum equal to the value of your pension. In order to access either of these options you’ll be required to provide medical evidence. We recommend contacting the HR team in the first instance for guidance.   

Retiring early

If you want to start receiving your pension before age 60 you can, as long as you are at least 55 years old (rising to 57 from 6 April 2028). You can do this and continue working, full or part time, either for Schroders or somewhere else. In this circumstance an ‘early retirement factor’ will be applied to your pension, related to the number of years and months you’re retiring before age 60, which will reduce the annual amount you receive. This is because your pension will, in theory, be paid to you for a longer time.

Retiring late

If you want to delay taking your pension past age 60 you can. Your pension will be increased by a ‘late retirement factor’ as it will, in theory, be paid for a shorter time. You should consider that you have until age 75 to take your benefits.

Retire with the right amount

Everyone’s retirement needs and objectives are different, so there’s no one-size-fits-all solution to making sure you have enough to live on when you stop working – especially when accessing your funds early. Our Retirement living standards page can help you work out how much you need to achieve your desired lifestyle. You can also: 

Consider other sources of income

When you retire you might not have to rely on your Schroders pension alone. In fact, having multiple sources of income in addition to your Schroders pension can help you to safeguard your retirement plan. These may include other savings or investments, or income from property. You may also receive income from the State Pension.  

Your retirement options

Full pension

You can take a full pension for the rest of your life, which will increase in payment.

25% tax-free cash sum and reduced pension

You can take a tax-free cash sum (up to 25%) which will reduce your remaining pension. This would then be paid for the rest of your life and will increase in payment.

Transferring out

Visit the Our pension scheme page where you can find out more on transferring out of the Scheme. You should think carefully before transferring out any DB pension benefits.