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New pension arrangements

Discussion in 'Retirement' started by Flapwell, Jul 23, 2015.

  1. Flapwell

    Flapwell New commenter

    Just spent about 3 hours trying to get my head around these. Think I understand them but have booked an appointment with a financial advisor having also looked into tax on interest in a savings account. Seems it may be best to take interest tax free? I think due to low income and then try to dodge the 5 year conversion into average earnings re pension. I left on UPS 3 in 2012 so average earnings would be a disaster and reduced pension due it taking it a little earlier could be better. Still not sure if I would need to pay into the pension before the 5 years is up, it seems that I wouldn't need to having looked as case studies for deferred members on the site.

    Cannot believe the way that many people will be conned out of the pension they expected..If this was a normal investment, which I have Thank God, surely it would be illegal?

  2. gymjack

    gymjack New commenter

    Erm........could you make English your preferred means of communication?
  3. Flapwell

    Flapwell New commenter

    Hoped that someone who had at least read the new pension arrangements, on the teachers pensions site, would repply. Sadly not. Your loss, you could go to average wage and lose your lump sum payout if you take more than five years out of service.
  4. Flapwell

    Flapwell New commenter

    Your retirement age re the teachers pension could also be as be as high as state retirement age when you thought it was 60. I'm a "protected" member but only just. Yes it is difficult to understand, but important.
  5. wanet

    wanet Star commenter

    I also couldn't make any sense of what you were asking?
  6. lizziescat

    lizziescat Star commenter

    Likewise, I haven't answered because I'm not sure what your question is. If you are asking a whether you should do x or y, no one could possibly say without precise figures and details (and you shouldn't take notice from us amateurs anyway).

    I'm not sure what 'tax free on savings' stuff has to do with your pension

    If, however, you want to know how people themselves have coped with the decision making process eg what questions they asked/factors taken into consideration, then you are unlikely to find any 'expertise here, as retirees/close to being retirees have not done so under the new arrangements.

    I know unions in my area have held (v poorly attended) meetings about this in the past (did you attend these?) and they are likely to have knowledge of their general impact also TPS website has/has information somewhere about how the changes might affect you.

    As a general rule you might get a better response by not insulting people in the Retirement (not teachers' Pensions site) forum

    I understand that you are concerned about your pension (I too was and gained a lot of sensible support and info from here pre retirement) but directing your rant towards the innocent hardly helps.

    Some other points.

    I, like most on here, retired / will retire under the 'old' rules so do not have detailed knowledge of the new.

    My understanding is that:

    • The retirement age for the new pension has been 65 for new entrants since 2005? (Is this the 5 year rule you mention?)
    • I thought existing pensions rights were to be protected/frozen -including age of claiming- are you saying that this doesn't apply to you? Why?
    • Average salary and associated pension age (rising in line with retirement) starts for all in 2015/2016?
    • Re IFA: make sure the IFA has specialist knowledge of the Teachers pension scheme - and the new changes - I have had poor advice (by omission) because of this. I think it is always better to think of IFA as IFS( Independent Financial Salesperson)
    You should a) contact your union / their websites to see if they have any information which may help you.

    Look at the TPS website and if necessary ring. The TPS people can be quite helpful for factual information but of course they CAN NOT give advice.

    Finally: Ignore anything people on this site say [​IMG]
  7. old_dobbin

    old_dobbin Occasional commenter

    I've tried to work out what you are trying to say in your post, but I'm not sure.

    I think you mean that you have money in a savings account and because your income, including your teachers' pension - when you receive it- will be below your personal tax allowance, you want to receive the interest tax free. Is that what you mean?

    I think this means that you are trying to decide whether to take your pension before you are of normal pension age, ie ARB , so that you can get a final salary pension based on your last salary in 2012, which I assume was your highest annual salary.

    I'm sorry but I can't work out what this means. Are you considering buying extra pension? If so, the details of what this costs are on the Teachers' Pensions website.

    I think you should contact Teachers' Pensions to get accurate answers to your questions. Without details of your circumstances no-one on these forums can give you any answers.


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