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How much each month from this pension ?

Discussion in 'Retirement' started by Bob Bridges, Sep 1, 2019.

  1. Bob Bridges

    Bob Bridges New commenter

    I'm tired from teaching - please note not tired of teaching.
    Need to retire soon.

    Teachers Pensions Agency says £16500 plus a lump sum.
    How much does this mean each month in my pocket ?

    16500 - 12500 personal allowance = 4000 taxed at 20%

    800 per year tax

    16500 - 800 = 15300

    15300/12 = 1275 per month

    Have I missed something ?
    Thanks in advance for comments, wish me luck this week (suspect I'm not alone in that feeling).

    Bob
     
    Piranha, eljefeb90 and richest1 like this.
  2. 50sman

    50sman Senior commenter

    NO you have not missed something
    You do not pay NI as you have already paid it!
    You do not pay pension contributions on it
    Up to you if you carry on with union fees

    You no longer have work expenses (clothes, car etc)

    You may want to consider filling a for. In on the TP website
    If that 16500 figure is at 60 check what it would be with ARB
     
  3. razziegyp

    razziegyp New commenter

    I was tired from and of teaching the same old same old, the stresses of Year 6 SATS, nothing ever being good enough etc etc. So I took slightly early retirement at Easter and went off to teach in Nigeria in the September. Everyone held up their hands in horror....”not Nigeria!” but I had 6 great years there, teaching in an international school, and doing private tuition to augment my teachers’ pension. Now with my state pension too, I am back and living very happily. Is this something you could/would consider? It made the last few years very varied and interesting, boosted the pension coffers and gave teaching a new lease of life. Good luck!
     
  4. diddydave

    diddydave Occasional commenter

    If you are going before 60 then there would be a reduction but otherwise no.

    You'll also get your state pension when you reach that age - might be worth checking if you've got enough years in that and whether you have qualified for the 'extra' pension, if not then doing a little bit of exam marking or invigilating so you can pay the cheaper National Insurance voluntary figure may be considered.

    AAB reduction figures are in here: https://www.teacherspensions.co.uk/...ement/early-retirement-factors-july-2019.ashx

    @55 = 81.1%
    @56 = 84.5%
    @57 = 88.0%
    @58 = 91.8%
    @59 = 95.9%
     
    Last edited: Sep 1, 2019
    Bob Bridges and eljefeb90 like this.
  5. eljefeb90

    eljefeb90 Senior commenter

    And remember that this amount is your guaranteed base income. You will have the time to earn extra doing other jobs. I know several teachers who retired early, like I did. Some still teach but only now and then for the home education service or for the hospital school. One delivers cars, one does viewings for an estate agent, but most of us do invigilating. I have a number of invigilating contracts to supervise professional and university exams .I also work on the electoral roll for my local council. It really is a doddle compared to teaching and gives a structure to my year.
     
    Piranha and Bob Bridges like this.
  6. Prim

    Prim Occasional commenter

    Plus your lump sum
     
    Bob Bridges likes this.
  7. Bob Bridges

    Bob Bridges New commenter

    Many thanks for all the replies.
    Lots to think about - especially this week.

    Best wishes,
    Bob
     
  8. Master59

    Master59 New commenter

    Also, you can generate some extra monthly income from interest on your lump some...although rates are poor, it’s still possible....an extra £100+...?
     
  9. Piranha

    Piranha Star commenter

    If you can get a little tutoring, that is ideal, as you can take fees up to £1,000 p.a. without paying any tax.
     
    eljefeb90 likes this.
  10. stopwatch

    stopwatch Established commenter

    Consider exam invigilation after retirement if your State Pension years are insufficient (35 years total needed). You can then pay Class 2 for the remaining years (about £150 a year) until you get the State Pension.
     
  11. Piranha

    Piranha Star commenter

    True, but you also can as a self-employed tutor. And, as I mentioned before, up to £1,000 fees can be taken tax free. Exam marking also counts for the Class 2 contributions. I have no idea why it is different from any other seasonal work.
     
  12. wayside34

    wayside34 New commenter

    Bob Bridges likes this.

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