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Pension contributions if work past NPA 60

Discussion in 'Retirement' started by Muic Smith, Dec 8, 2018.

  1. Muic Smith

    Muic Smith New commenter

    Hi everyone,
    Please could anyone tell me what happens to pension contributions if I choose to work on in full-time employment past NPA 60? My NPA is 2020. I cannot afford to retire at 60 and will have to work until at least 64. Do all pension contributions just stop after 60 or do I then start to pay into the career average pension scheme? I have read on this site that some people have paid into the career average pension scheme for a couple of years after being in the previous scheme. I am thinking now though that this may only be until they get to their NPA.
    Many thanks in advance for any replies.
     
  2. Sundaytrekker

    Sundaytrekker Star commenter

    My understanding is that, if you are in the final salary scheme and I think you are from your age, then you will just keep paying into the final salary scheme until such a time as you cease employment and take your pension. You will have accrued extra years of contributions because you have carried on working without a break. There are options around phased retirement which might give you a similar income but reduced working hours.
     
  3. catmother

    catmother Star commenter

    I think the same as @Sundaytrekker . If you are continuing with the same job,you will just continue to pay into your teaching pension and accrue more years.
     
  4. heldon

    heldon Occasional commenter

    There is no actuarial increase I am afraid, just more accrued years
     
  5. catmother

    catmother Star commenter

    What do you mean by actuarial increase,@heldon?
     
  6. heldon

    heldon Occasional commenter

    You get an actuarial reduction if you take it early, as you get it for longer. But, no increase if you take it later than your NPA. You will obviously be getting it for less time. If you defer the state pension then it is paid at a higher rate for example.
     
  7. catmother

    catmother Star commenter

    I see what you mean now. I was just thinking of it in terms of putting more years in.
     
  8. Muic Smith

    Muic Smith New commenter

    Many thanks for your replies. I really appreciate them! I now understand that I stay in the final salary scheme and accrue more service but there is no actuarial increase. I think the Retirement forum is brilliant.
     
  9. Guest

    Guest Guest

    Yes no actuarial increase but your pension will be higher because you have worked more years. For example if your average salary was 45000 this divided by 80 and multiplied by your service would give you a pension of £20812 assuming 37 years service at 60. Lump sum would be about £62000. Retirement at 60 would make that £21937 plus lump sum of nearly £66000. You would also have benefit of two more years salary. It all depends on your cirumstances. Good luck.
     
  10. Muic Smith

    Muic Smith New commenter

    Really great news! I am going to celebrate with a cup of tea and start doing my planning for school tomorrow. Thank you.
     
  11. Muic Smith

    Muic Smith New commenter

    Before my first post, I did not realise that I could still accrue additional service after my NPA of 60 in 2020. That is why it is such great news!
     
  12. Guest

    Guest Guest

    In my post the second retirement age should be 62 not 60 apologies.
     
  13. heldon

    heldon Occasional commenter

    it is possible to acrue a maximum of 45/80ths I believe, if you managed to buy back to age 20 before they stopped that and you serve to 65. Why you would want to beats me!
     
  14. Muic Smith

    Muic Smith New commenter

    Thanks, paulstjohn, I did read it as you meant it to be.

    Unfortunately, heldon, I will have to work until at least 64 for financial reasons. I do enjoy teaching the pupils though. I do not enjoy the stresses from the other aspects though.
     
  15. Guest

    Guest Guest

    heldon You need to appreciate that not everyone is in the same fortunate position as yourself and your wife financially to go as early as you both did, without need to take your pension early.

    For some they chose to continue to work as they like the job, for others it is a financial necessity.
    This forum is about retirement generally, but at times some posters seem to have too much emphasis on going as early as possible and seem incredulous that others may not wish to do so.
     
  16. heldon

    heldon Occasional commenter

    I am fully aware that financially some need to work on, or would like to. I think the forum offers good debate and often good information. Sorry if I seemed insensitive.
     
    Dorsetdreams likes this.
  17. Guest

    Guest Guest

    Your response is appreciated heldon. Thanks.
     

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