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Requesting Part time - should I take my pension too

Discussion in 'Retirement' started by annasmagala, Sep 19, 2019.

  1. annasmagala

    annasmagala New commenter

    Hello everyone I am 57 next month and am considering requesting a reduction in hours to 0.6. I’m trying to find clear information to help me decide whether I should take my pension at the same time? Could manage on the 0.6 and I know if I take my pension it will be reduced - but I will receive it for two/ three years longer than if I wait until 60 ... any thoughts appreciated, especially if you’ve been through the same thought process
     
  2. FrankWolley

    FrankWolley Star commenter

    A few thoughts...have you worked out exactly what you will get if you retire early, as compared to going on to the retirement date? Are you sure that is 60? Will your school let you go p/t?

    As far as I know the final pension is still worked out on the best 3 consecutive years in the last 10...so that would allow you to do a few years p/t if your most recent years are the best...Again, you need to look into this.

    FWIW I retired at nearly 57 as I wanted money in hand, and 6 years on I haven't regretted it (not did I go back to work on supply etc as I thought I might...)

    Exciting times for you...Retirement is great! :D
     
  3. annasmagala

    annasmagala New commenter

    Thanks for your reply. My NPA is definitely 60. I am trying to get clear figures from TPS as their calculators always seem too general. I am not class-based, in primary, and I’m fairly optimistic school will agree to p/t - have range of caring / health concerns so really want to reduce hours. Glad retirement great for you. Still think it want 2/3 years reduced hours before taking final plunge ...
     
  4. 50sman

    50sman Senior commenter

    As you are going to a .6 you could also take up to 75 percent of your pension now and the rest when you do retire which will be paid at the full rate not ARB

    If you take ARB you must have a break in contract of at lest one day - when I took ARB my LA insisted on 10 days so they could in future make me redundant if they wanted to and not pay redundancy

    Get your figures - work out how much money you need to live on and then decide. you are fortunate you can still go now and most of your pension is in the old scheme.

    If you do decide root go part time and take part of your pension check with TP that you are a
    Protected member and can still get the rest at 60
     
    annasmagala likes this.
  5. diddydave

    diddydave Occasional commenter

    Consider Phased retirement, it was designed for exactly the situation you are describing.
    Whether it is exactly what you need I'm afraid only you can decide that! ;)

    As ever I'd always say you need to find a professional to got through your own personal circumstance and finances - most unions have an association with a financial team, I had advice from Wesleyan and their rep was very good but I've heard it can very much depend on the individual.

    At 57 I presume you are a fully protected member so I'd suggest you need to look at your figures very carefully because the salary used to work out your pension is likely to be going down the more years you work. This is because, unless you have had a sudden promotion and pay rise in the last 10 years, it is most likely to be the average of your best 3 years in the last 10 - but crucially those years are all put into today's money by increasing them by inflation, and as we have not had any inflation beating pay increases your best 3 are most likely to be from 2009,2010 and 2011. Now most of the time this is counter-acted by working another year and so getting more 'service' into the calculation...but if you go down to 0.6 then you are only increasing your service by 0.6 of a year.

    For example
    a 2009 salary of £10,000 would be equal to one today of £12,273
    a 2010 salary of £10,000 would be equal to one today of £12,057
    a 2011 salary of £10,000 would be equal to one today of £11,561

    a 30.0 year career in 2019 would give you 30/80ths of £12,273 which is £4602.38
    a 30.6 year career in 2020 would give you 30.6/80ths of £12,057 which is £4611.80
    a 31.2 year career in 2021 would give you 31.2/80ths of £11,561 which is £4508.79

    From this I hope you can see that it is possible, given certain circumstances, that your pension could actually go DOWN if you work longer - DO get proper professional advice.

    Bear in mind that I have not put in the teacher's pay rises from 2009-2011
     

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