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Post- NPA

Discussion in 'Retirement' started by Fazzoletto, Oct 28, 2019.

  1. Fazzoletto

    Fazzoletto New commenter

    Hoping for some wisdom from those who have trodden this path before; I’m a couple of years older than NPA, full service history (sounds like an old Vauxhall!). Still enough enthusiasm and energy to keep teaching but with reduced days. If I were to reduce to 3 days would it be preferable to take benefits and then ensure that salary plus pension do not exceed salary of reference, or delay drawing down benefits and continue to pay into pension pot? Current best three consecutive years are Oct 09 to Oct 12. Any advice please?
    Prim likes this.
  2. diddydave

    diddydave Established commenter

    Not on your path but I'd suggest some proper advice from an expert might be in order (and quite quickly) - you need someone who can go through your salary history and give you, in pounds and pence, what your situation will produce. It will be changing every month.

    Your best 3 will continue to change every month, most likely the salary used will be going down (due to our pay rises being less than inflation) but it is counteracted in part by the extra service you are putting in BUT...it still may mean that your pension is going down rather than up! - get it checked quickly as you may be paying for the privilege of getting less.

    Going down to 3 days may make any drop more significant because, after 1 year of that for example, your best 3 in the last ten will have moved on a WHOLE year BUT your service will have only increased by 0.6 of a year.

    There are many options open to you but you will need someone who knows your circumstances and the pension schemes well in order to get any good advice.
    Fazzoletto and HannahD16 like this.
  3. tracymicra

    tracymicra New commenter

    I was in a similar position about a year ago; working full time and coming up to 60 with pension possibly getting lower as best years dropped off - was in final salaryscheme. . I opted out ofpension scheme to stop the clock just a few months before reaching 60. Claimed pension at 60 in July 18 and started working part time in Sept 18 - 3 days 0.6. I pick up pretty much what I was earning full time with pension plus salary. Am also paying in to the new career average pension now but I won’t get that til 66. I found it very hard to get clear advice so don’t know whether I did the right thing, but it felt like a no brainier to work 3 days and pick up same money as for 5.
    As you’ve reached pension age pretty sure you can just claim it now and go part time. But sorry I’ve no idea if it’s more advantageous to delay claiming if you can survive on the pt wage. Diddydave is v clued up on all of this so he might know? I found this forum far more help than those on the phone at TP when I was trying to decide! Good luck whatever you decide to do. Can highly recommend pt!
    Fazzoletto and HannahD16 like this.
  4. diddydave

    diddydave Established commenter

    I realised that you said that you have a "full service history" - the maximum service that can be counted is 45 years, so if you have more than that you should either opt-out or take your benefits and on restarting check you can go into the career average scheme which has no such limitation otherwise you will be paying into the pension for no gain...(and quite possibly losing out due to the issues with inflation and past pay rises).

    You may want to have a look at a spreadsheet that we used. It is useful if you want to get a rough idea of what your revalued salaries are without asking TPS...you can see your actual salaries on the TPS website under your employment history.


    To use the sheet just make a copy for yourself.
    Fazzoletto likes this.
  5. Prim

    Prim Occasional commenter

    Sounds morbid but I would opt out and start a new pension. If anything were to happen your family would still have death in service if you were in a new scheme. As above speak to a professional.
    emerald52 likes this.
  6. Fazzoletto

    Fazzoletto New commenter

    Thanks very much for all of this, everyone. By 'full service history' I just meant no breaks in service for 38 years. Very useful and helpful comments - thanks again.
  7. Fazzoletto

    Fazzoletto New commenter

    This is most helpful - many thanks!
  8. Brianthedog

    Brianthedog Occasional commenter

    I suspect that with 38 years service you'd be earning too much at 3 days a week plus pension against your salary of reference.
    I took my pension, with 28 years service, just shy of my 60th, and returned on 3 days. My combined income is more than what my salary of reference would have been.
  9. tracymicra

    tracymicra New commenter

    Suspect Brianthe dog may well be right. Think I was on about 28 years too, took pension at 60. Pension + 3 days is under salary of reference. You might be ok on 2 1/2 days? But definitely ok on 2 days. It’s pretty easy to work out once you know what your annual pension and salary of reference will be. Hope things work out well for you.
    emerald52 likes this.

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