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Can you ...

Discussion in 'Retirement' started by tall tales, Mar 23, 2016.

  1. tall tales

    tall tales New commenter

    Can you take your pension plus lump sum but carry on teaching? I'm likely to retire in the next year or two ( am in my 60s ) but I'm worried about the hole in Osbourne's buget.
    If that is possible, can you just continue with your existing contract?
  2. Mrs Hiughes

    Mrs Hiughes New commenter

    I think you can just carry on after 60 but you need to take a one day break in service to get your pension and lump sum. Your employer needs to agree. You cannot earn more than your salary of reference otherwise your pension may be stopped ( it is around about your end salary or more). I retired at 60, took a one day break in service, went back on 3 days pt6, took my lump sum in full, my pension plus my part time pay is not much less than what I was on full-time and with a Head of Dept responsibility. But if you earn much more (wage plus pension) you will pay more tax possibly at higher rate. I feel very happy on 3 days with no management responsibility and almost as much money and I know I am very lucky with an enlightened employer who values my experience and expertise. I plan to do this for a few years as I like it and I cannot get my old age pension for 6 years yet and I have family commitments/financial considerations that a pension alone cannot meet. Part time is fantastic :)
    plot71 and install like this.
  3. tall tales

    tall tales New commenter

    Thank you so much for replying. It's the 'salary of reference' part I don't understand. I get that I'll be taxed more but I didn't realise they could just stop paying it!
    So I guess my cunning plan is a non starter - sigh
  4. wanet

    wanet Star commenter

    It is how much you can earn without it affecting your pension.
  5. install

    install Star commenter

    If you are looking to save money -see if you can postpone your State Pension for a year. You should end up quids in.
  6. FrankWolley

    FrankWolley Star commenter

    Except you'll get a year's less pension in the long run - probably more than 12 or 15 K....
  7. emerald52

    emerald52 Star commenter

    Be careful as you have to take the pension before 60 snd have a day's break so you don't fall foul of the regulations. Then you can teach after 60 without it affscting your pension. The delayed state pension works well for those on the old scheme who get a 10% uprating a year. Money box said not worth it for new scheme people. Salary of Reference is your best salary uprated for inflation. Mine was £5 k more than my maximum. Shows you how our salaries did not keep pace with inflation.
    install likes this.

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