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Pensions minefield!

Discussion in 'Retirement' started by zondacat, Jan 11, 2019.

  1. zondacat

    zondacat New commenter

    Hilarious - I spent hours trying to look at different scenarios and retirement ages - I am in both schemes so have two parts to my pension. It was as clear as mud. Got hubby to look for me. His response was " Why is it so complicated?" . He then proceeded to log onto his police pension website which showed one table with all the different retirement ages down one side, payments, lump sum and a final column that summarized the benefits or drawback of retiring at that age! Simples! If only.
    Lara mfl 05 likes this.
  2. FrankWolley

    FrankWolley Star commenter

    Is the Police scheme as complex as the TPS?
    lizziescat likes this.
  3. PeterQuint

    PeterQuint Lead commenter

    The NHS one is awful. Nowhere near as detailed as ours.
  4. catmother

    catmother Star commenter

    No idea if it's complex but my brother-in-law is retiring next month on a full pension. He won't even be 52 yet.
  5. sunshineneeded

    sunshineneeded Star commenter

    I'm an HLTA looking to maybe take flexible retirement from September - work 3 days a week and draw pension for 2. Thinking to do that for another year, maybe two. My HT is supportive of this, but it's SO hard to get clear information. Asking for a couple of illustrations of (a) what I might receive if I do this, or (b) if I leave it all in place until my actual state retirement date in March 2020 … well, I might as well have been speaking in Swahili! After several emails and phone calls, I hope the info I need is on the way now - but it's like wading through treacle!
  6. Brianthedog

    Brianthedog Occasional commenter

    The problem is, TP won't give you a forecast other than at normal retirement age. But you can work it out. If you look at your pension on the TP site, it tells you what your current pension is worth, in other words what you would get at retirement if you stopped paying in to the scheme now. If you take it early, you have to apply an actuarial reduction. It's approx 5% reduction per year. You then have to look at if you continued paying in, at what point does your revalued salary start to drop. I am 10 months from my normal retirement age, and my revalued salary is dropping by about £40 a month but as I'm still contributing my pension is still rising. I know that if I wait until after April to either freeze or take my pension it will drop significantly. My salary hasn't changed very much over the past ten years.
    I'm finishing in April but returning after a days break on a new contract. I intend to work for a further 3 years or so. I've told TPS, and my pension online is now showing what I will get in April. Bearing in mind that I will have no pension contributions to pay, and my tax and NI payments will be lower on my 3 day salary, (although I know I will pay some tax on my pension) I will still be financially better off by £500 a month whilst still working. I'll also be able to pay off my mortgage and a couple of other bills, so will be much better off in real terms. I intend to save all this extra money so that when I retire fully in 3 years I will have a bigger cushion of savings to add to my pension until I can access my State pension (unless the powers that be decide that us women born in the 50s can wait even longer to access the state pensions we had expected to get when we were 60).
    I know I will be able to live comfortably off my teachers and state pension.
    No what you need to do is work out how much you would need to live off when you fully retire, then work backwards from that.
  7. diddydave

    diddydave Lead commenter

    There are just so many variable in the teacher's pension that have to be taken into account - I taught IT/Computing and the spreadsheet I came up with was pretty complex, I was lucky enough to not have significant service in the career average calculation to make it worth really worrying about but if you throw that into the mix, the best three years in 10, gaps in service of more/less than 5 years, uplifts of either CPI or CPI + 1.6% it's "tricky".
    PeterQuint likes this.
  8. PeterQuint

    PeterQuint Lead commenter

    Diddydave, I’ve done similar, and understand your point.

    But if you and I can do it, I’m sure a skilled ICT expert who’s doing it as a paid job could knock one up pretty quickly, to use at the website.
  9. diddydave

    diddydave Lead commenter

    Oh yes, it's not difficult but I think 'official' sources are reluctant to as it opens them to litigation if it's not perfect
    Jamvic and FrankWolley like this.

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