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Early retirment at 55

Discussion in 'Retirement' started by breadmaker, Sep 16, 2019.

  1. Treacle3

    Treacle3 New commenter

    Yes, you lose just over 20% of your annual pension and lump sum, forever, compared to waiting until 60. However, you get 5 extra years of this reduced pension so (I forget the exact figure) but I think you have to live until your mid 70s at least to financially lose out. No guarantee of living to your mid 70s either. You get 5 years less of teaching which if you've had enough is worth an awful lot - and there are plenty of part time jobs out there as long as you are happy with minimum wage or slightly above. You may, of course, have other skills you can bring to a different workplace that will earn you more than this low amount.
    I left at 55 this August and was born in 64 - so as a tapered member didn't lose out that much compared to the old scheme tbh. That will be similar for you breadmaker.
  2. Treacle3

    Treacle3 New commenter

    They can hold it up, I believe, for 6 months... but I think (anecdotally) it is virtually unheard of.
    They can't stop you resigning, of course, so maybe a school might potentially say to a prospective retiree... "if you leave at the end of term we'll hold your retirement up for 6 months". Surely unlikely - and what would be the point of effectively trying to "blackmail" an employee to stay on who doesn't want to? Is there any teacher/Head teacher who's that important to a school that they would do that?? Maybe there is:D
    PeterQuint likes this.
  3. Treacle3

    Treacle3 New commenter

    Also, leaving teaching at 55 instead of 60 probably means you are far more likely to get a part time job. Potential employers are surely more likely to believe that you want to try another "career" and if they employ you they will get 5 more years work out of you, potentially, than if you start something else at 60. Not saying it would be impossible to get a "new job" at 60 - just that it's probably easier at 55.
    You only have one life. If you've had enough of teaching and you can probably just about afford it...leave.
  4. eljefeb90

    eljefeb90 Senior commenter

    There have been a few threads on this with some great calculations done produced by (presumably) mathematicians. If you add the extra five years pension- 5 X 13000 and subtract all those missing 20% s + the smaller lump sum, you do get an age in the mid seventies before you start to 'lose out'. By this time, of course, you will have your state pension.

    Other factors to look into are your 'best three in ten'...If your salary, like most people's, has been fairly static over the last decade, a year with relatively high inflation makes a big difference. I was delighted back in 2015 that my salary of reference was 12% higher than my actual salary, thanks to three years when inflation was between 3.4 and 5.2 %.
    Secondly, how realistic is it to compare your current pension with what you'll get at 60? If you are already totally fed up with teaching now, there is no way you will stick it out for five more years.
    Treacle3 and Dorsetdreams like this.
  5. eljefeb90

    eljefeb90 Senior commenter

    I just do casual work, mainly invigilating, so I don't feel tied down. I could do more if I really wanted to. I earned nearly 10k last year (gross).When I retired I just wanted out and had not really thought about working part time. There is a lot of work out there and I find it enjoyable and stress free.
  6. PeterQuint

    PeterQuint Lead commenter

    Right, so a message for the OP, and I’ve said this before.

    You’ve given us a good idea why you’re going, but just to clarify. In an ideal world you’d stay, but they’ve ruined the job and piled in the stress/workload. Is that right?

    If that’s the case, don’t go.

    Why are you stressed? I’m guessing two reasons, the extra work, and you face disciplinary action (ultimately the sack) if you don’t jump through their hoops.

    Well, if you’re happy to go anyway, and you don’t need a reference, the sack isn’t a threat.

    And the extra work? Don’t do it. It do it as quickly as possible, and don’t mind if they don’t like it.

    You can maybe get another year or two’s work, stress-free, more income, bigger pension contributions.

    If they’ve fowled up the job, why should you jump immediately?
    Prim and ikon66 like this.
  7. cedars1948

    cedars1948 New commenter

  8. cedars1948

    cedars1948 New commenter

    As regards to retiring at 55 what exactly is the figure your pension is reduced by. On one document from 2015 is says you get 79.5% but in another document on the teachers pension website is states 81.1 % (this comes from June 2019)
    So what is the figure?
  9. diddydave

    diddydave Lead commenter

    The factors used can change over the years, so use the latest version - see this page for more info: https://www.teacherspensions.co.uk/members/resources/factors.aspx
  10. cedars1948

    cedars1948 New commenter

    So it does look like 81.1% is now the amount for retiring at 55
  11. diddydave

    diddydave Lead commenter

    Yes...table ER1 has 81.1% for 55 year olds with NPA of 60
  12. cedars1948

    cedars1948 New commenter

    For me that could make the difference of retiring at 55 rather than 56
  13. diddydave

    diddydave Lead commenter

  14. breadmaker

    breadmaker New commenter

    Hi, I didn't realise this thread was still going so thank you for the additional contributions. To answer some questions, my resignation- not retirement- has now been handed in. I plan to take some of the advice on here and look for some casual jobs/work. I live in a large city so hope I can pick something up. If not, at that point I shall take my pension.
    I feel very positive both about the future and about the fact that I will be going out (hopefully) with my head held high knowing that I did the best for the children that I could right to the end.
    Jamvic, Prim, PeterQuint and 3 others like this.

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