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Going too early?

Discussion in 'Retirement' started by Steve5737, Oct 24, 2015.

  1. Steve5737

    Steve5737 New commenter

    I have handed in my resignation for end of this academic year. That will take me to age 54. The job has changes so much and seems no no longer related to children!! I want to continuE to work.
    Do I need to inform TPS?
    Do I have to take a day off work and restart on a new contract?
    Does 35 years now count as necessary for full state pension?

    I have built up 32 years continuous service. I want to make sure that I do not make any mistakes. Any advice would be most gratefully received thanks
     
  2. Morninglover

    Morninglover Star commenter

    Assuming you are wishing to take your pension early, you would have to leave your job and start under a new contract... But as far as l know you can only do this (& get your pension) when 55. I do hope you checked all details with the TPS website - if not, l would do so ASAP.
     
  3. catmother

    catmother Star commenter

    Are you sure you'll be able to get another job?
     
  4. Compassman

    Compassman Star commenter

    You cannot claim your pension until you are 55.

    However, if you find another job before then you can defer taking your pension and get more money.

    I'm 52 and have just resigned but I do have another job to go to.

    Teaching just isn't worth the hassle any longer.
     
  5. red_observer

    red_observer Star commenter

    I share a lot of the aboves feelings. I'm thinking of jacking it in this year at 52. Don't have a plan b though and cant access my pension till 55. Teaching isn't what it used to be!
     
  6. old_dobbin

    old_dobbin Occasional commenter

    You should check your teachers' pension record with tp to make sure that your current employer has correctly reported your service. Also , if you haven't done so, get a state pension forecast. Yes, I think you will need 35 years for the full state pension but because you have been contracted out for your teaching years you may not get the full amount of about £150 a week.
     
  7. mobie

    mobie New commenter

    Hi Steve
    You wil not be able to access your teacher pension until you are 55. You won't be able to claim your state pension until you are 67 and you will need 35 years of contributions for it to be paid in full. There are also changes afoot in this area in 2016 which may, or may not affect us so try to stay at the moment / find another post.
    I am in the same situation as you - we have been through continuous change during our years at work as teachers. Like you I went into the profession at 22 and have built up 32 years of continuous service - but have looked into this over the past few years trying to work out when I can go - use the Teacher Pension website and the calculators and your personal stataement.
    If you conitnue to work you can still pay into the Teacher Pension - or you could freeze your pension pot and work but no longer pay into it (you would need to complete an opt out form).
    Do check the TP website - so you can work out finacially what is best for you in the long run.
     
  8. Rott Weiler

    Rott Weiler Star commenter Forum guide

    @Steve5737 , I checked this out for myself recently. It's currently 30 years but from April 2016 goes up to 35 years so you'll need 35 years for a full state pension. After April (but not before) you can buy additional years (up to a maximum of 6 years) to take you up to the 35 years . Price hadn't been fixed last time I checked but at the moment (ie under under the current 30 years regime) each year costs a little over £700 and will increase state pension by around £200 pa. So the payback period is less than 4 years, worth doing in my opinion unless you have some reason to think you won't make it to 4 years past state pension age. You'll need to check the buy back costs and how much extra state pension it gets you after April next year - don't be surprised if it's rather less generous than now! Even though your state pension age won't be until around 2028 you have to buy back years within 6 years so you can't leave it until 2028 to decide whether to buy.

    Don't do anything without getting a state pension forecast. You can get one as often as like. When I got mine a couple of months ago they were still saying that the pension amounts for post-April 2016 hadn't yet been announced by government so they were 'estimates'. You'll need to recheck after April. The change from 30 to 35 years is the just one of many changes - and by far the simplest to understand. The changes to how contracted out pensions are treated and the transitional protections have a bigger impact (and gave me a headache just trying to understand what they were talking about).
     
  9. Yoda-

    Yoda- Lead commenter

    It is my understanding that we all have a guarantee that we will not get less under the new April 2016 state pension than under the current scheme.
    Taking into account the 32 years NI contributions you have in the current scheme. 30 needed for Max pension. This should produce a pension minimum of £ 115 pw plus this years 2.5% upgrading.
    The Guardian and Daily Mail online have had articles as to how the new pension is calculated. You may get more than £ 115 plus 2.5% in the new scheme but this is rather complicated as we paid contracted out NI contributions and you need 35 years of full contributions for the full new pension. Most people initially will not get the full new pension. Why am I surprised?
     
  10. Steve5737

    Steve5737 New commenter

     
  11. Steve5737

    Steve5737 New commenter

    Yes I do have a job to go to. It will ( in theory) tide me over a year until I can access my actuarial reduced pension at 55. It will mean receiving an income of one fifth what I earn now but I'm prepared for that! I have a backlog of music I need to listen to, walks I have never done and a garden needing my attention. A worthy trade off I feel.
     
    valyates likes this.
  12. mobie

    mobie New commenter

    Absolutely Steve. Good luck - I'll be joining you to do the same things in the not so distant future. What a wonderful sense of freedom and being in control of your life again - I'm looking forward to it too.
     
    Steve5737 likes this.
  13. Yoda-

    Yoda- Lead commenter

    “Soon will I rest, yes, forever sleep. Earned it I have. Twilight is upon me, soon night must fall.”

    If you can take the arcterial reduction and finance any funding gap up to the State pension, then 55 is not too early.
     

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