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changes to pensions

Discussion in 'Retirement' started by redx11, Dec 7, 2010.

  1. redx11

    redx11 New commenter

    Hi does anyone know how pensions will change in April? I am wondering whether to retire next year and had thought I would go to end of year but if i will lose out i can finish at Easter. I would be very grateful for any advice.
    Thanks
    Red

     
  2. redx11

    redx11 New commenter

    Hi does anyone know how pensions will change in April? I am wondering whether to retire next year and had thought I would go to end of year but if i will lose out i can finish at Easter. I would be very grateful for any advice.
    Thanks
    Red

     
  3. Teachers pensions should increase by 3.1% in April 2011 in line with the increase in the CPI (rather than +4.6% if it was still linked to RPI).
    But the full increase would only paid if you have been retired for at least one year. If you retire on 30 April 2011 you would get an increase of 11/12 of next years CPI increase in April 2012. If you wait until 30 September 2100 you would get an increase of 7/12 of next years CPI increase in April 2012.

     
  4. lindenlea

    lindenlea Star commenter

    I don't think a matter of months can make a real difference. Do what you want to do in terms of your life.
     
  5. redx11

    redx11 New commenter

    Thanks for the answers. Wish I understood pensions more.

     
  6. lindenlea

    lindenlea Star commenter

    Work on the assumption that it will never be as much as you would like but that there is life after work so you'd better get on and make the most of it.
     
  7. The move to CPI in April doesn't just affect your future pension. If you have had no rise in your wage, apart from the yearly increases, in the last ten years or so then you may be surprised at the average yearly salary your pension will be based on. Because the calculation is done according to the RPI and we rarely get a pay rise to cover inflation then the increases overtake what you actually get. You can check this on the Teachers' Pensions website (My Pension Online). When the average salary is calculated in line with CPI in April then this will be a lesser amount so reducing your pension. Get in touch with the Teachers' Pensions Agency, They're always very helpful and are happy to answer questions over the phone so long as they are not of the 'What should I do?' type. Good luck
     

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