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ARB timing

Discussion in 'Retirement' started by heathcote42, Apr 30, 2012.

  1. It all comes down to a personal choice and the form you fill in - AAB - AAB form; Age retirement - Age retirement form.

    The previous posting gave a slightly inaccurate figure - if you retire and collect benefits on 31 August 2012 you will be 59y and 10 complete months thus the reduction will be 0.4% - a minimal difference.

    AAB - allows re-employment within teaching without the worry of an earnings limit
    Age - if you return to teaching, whether or not in TPS you will be subject to an earnings limit (see TP site for more details)

    Thus if you do not intend to take up any further teaching, or very little deferment until age 60 would seem to be more appropriate, but as I have said...down to you.

    Finally, if you do defer until October - you will be missing income for only 2 weeks before your lump sum will be paid....normally your previous month's salary will have seen you through September.
     
  2. voodoo child

    voodoo child New commenter

    Go for early ARB since if you retire before 60 you can then work again (with one day off between contracts so it is not continuous) and receive pension and salary. If you wait till after 60 then if your pension and salary combined are more than you would earn full time they take away pension from you!! You can start paying into another pension and build up more entitlement from your second pension too. Not many people realise this rule which means that you are much better off going before 60 for your pension and then working again. Do make sure though that there is one day when you are not employed between contracts so that your service is not continuous - otherwise you can find yourself paying back your lump sum.
     

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