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3% next April - now I know why I retired.

Discussion in 'Retirement' started by applecrumblebumble, Oct 17, 2017.

  1. applecrumblebumble

    applecrumblebumble Established commenter

    Rate of inflation 3% for September. No strike action no work to rule automatic increase in April.
    I would like to think our working colleagues will get the same (mmh) we’ll wait and see.
     
  2. minnie me

    minnie me Lead commenter

    Does this mean the TP ' salary ' I receive will go up by 3 % ?
     
  3. Lara mfl 05

    Lara mfl 05 Star commenter

    Mind you it's also rumoured that he may be about to increase taxation (for the older generation' to the benefit of the younger generation in the Nov. budget statement too! :( So don't start those celebrations too early.;).
     
  4. minnie me

    minnie me Lead commenter

    Bah humburg :confused: We have been ENORMOUSLY generous to our one and only son already !
     
    Lara mfl 05 likes this.
  5. applecrumblebumble

    applecrumblebumble Established commenter

     
  6. Sundaytrekker

    Sundaytrekker Star commenter

    Or making you pay NI on pension income. It’s a possibility.
     
    Lara mfl 05 likes this.
  7. Yoda-

    Yoda- Lead commenter

    This would be another election disaster. It would be on a par with the Dementia Tax. Demographicly targeted to wind up the Tories biggest supporters....
     
    Lara mfl 05 and emerald52 like this.
  8. applecrumblebumble

    applecrumblebumble Established commenter

    I would not mind paying NI contribution at class 2 rate if it increases my state pension. Give with one hand take away with another, isn’t that how the tax system always works.
     
    Lara mfl 05 likes this.
  9. plot71

    plot71 New commenter

    Thank goodness I posted my final escape letter and alerted TP (to share my celebration of the new year) having launched into 2 days a week which really interrupt the other 5...grrr!
     
    Lara mfl 05 likes this.
  10. ikon66

    ikon66 Occasional commenter

    Just read this on Money Saving Expert Site :)


    "Public sector pensions will rise
    The CPI inflation rate, combined with a job-specific rate, is used to upgrade public sector pension entitlements - ie, the amount that's put into your pension pot each year.

    Teachers’ pensions are now set to increase by 4.6% next year, while there's set to be a 4.5% rise for NHS workers and 4.25% for the police"
     
    install and Lara mfl 05 like this.
  11. holdingon

    holdingon Occasional commenter

    this will refer to the career average pension- cpi in sept ( announced yesterday as 3%) plus 1.6%
     
  12. lkit

    lkit New commenter

    Hoping this is not hijacking a thread. I'm no longer in the TPS as I was made redundant last year, I've no intention of teaching again so am a deferred member. Does my "Final Salary" increase each year until I get (the bulk of) my pension at 60, or does it just gradually lose real value?
     
  13. phatsals

    phatsals Occasional commenter

    It will go up each year in line with inflation.
     
    lkit and Lara mfl 05 like this.
  14. Piranha

    Piranha Lead commenter

    This means that deferred members who were at the top of the pay scale can end up with a higher final salary than if they had remained in teaching. Seems a bit unfair!
     
    Startedin82 likes this.
  15. paulstjohn2014

    paulstjohn2014 Occasional commenter

    Yes their final salary will be higher but this will not be the pension they receive. The pension at 60/65/67 will be final salary divided by 80/60, times number of years service. Depending on which scheme they were a member of, be it pre 2007,2007 to 2014 and 2015 onwards. Taking it earlier will also mean some sort of actuarial reduction.
     
  16. paulstjohn2014

    paulstjohn2014 Occasional commenter

    As far as the general thread title is concerned I feel it is important not to come across as triumphant, especially as so many who are working are finding inflation is eroding their standard of living. Of course I am sure that was not the poster's intention.
     
  17. applecrumblebumble

    applecrumblebumble Established commenter

    Certainly not triumphant but again, as with other threads, emphasising the importance of having the teachers’ pension and keeping its value.
     
    frangipani123 likes this.
  18. Piranha

    Piranha Lead commenter

    Yes, I realise that - I meant that the amount per year of service would be more. To take an extreme example, somebody with 35 years of service could end up with a higher total pension if they stopped working a year early and took a deferred pension (so no actuarial reduction) compared with working the last year if they did not get a pay rise. It used to be that pay usually rose faster than inflation, so this did not happen.
     
  19. lkit

    lkit New commenter

    Thanks for the info re deferred pension increases (any idea which inflation measure is used?).

    I'm certainly not triumphant re my pension, I'm still 12 years from 60 and only had 13 years in TPS, if I went back to teaching it would probably be on less than I was earning (UPS & TLR) which would mean that as most of my years to date are in a final salary scheme my pension if I taught 'til 60 would be based on a lower final salary (although I would have more years). That said the TPS is still a great deal compared to many other workers. I'm now in a job with a defined contribution scheme, which is basically a savings account (which my employer will match), however as my salary is less than half what I was earning as a teacher, the opportunities to save are somewhat reduced.

    My personal saving grace is that a good pre-teaching pension (from my 20's & 30's) is payable at 60, most of my TPS is available at 60, plus my 12 or so years (anticipated) of defined contributions can be gotten at 60 too. The irony of this is that these pensions are likely to pay more than my current post-teaching salary, (especially if I'm not paying NI or pension contributions) so I'll have a few years to get used to being frugal before I retire, or even keep working for a while (my job hasn't the stresses of teaching) and live it up a little/lot.
     
  20. ikon66

    ikon66 Occasional commenter

    Was out with retired teacher friends and they were discussing this. I'm retiring at Christmas and was expecting to receive this rise from April. However, they recon I wont be eligible until the following year!!! Is this correct please? :oops::oops:
     
    jlishman2158 likes this.

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