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Retirement and new employment with pension.

Discussion in 'Retirement' started by richest1, May 7, 2019.

  1. richest1

    richest1 Occasional commenter

    I retire this summer, but re start work on a contractual basis with a school for 1 day per week.

    I am not sure how many years i will work for, maybe 2 or 3.

    Is it worth taking up the option of a new non final salary pension?

    I think the school contribute 23% and I contribute 7%.

    Thanks as ever.
  2. phatsals

    phatsals Established commenter

    I do, there's no knowing how long you'll work for but you will either get an annuity or an additional pension at your NPA. You also get tax relief on your contribution. It's what I did and it just means there will be a bit more additional pension later on. Better value than a SIPP.
    richest1 and Dorsetdreams like this.
  3. richest1

    richest1 Occasional commenter

  4. Guest

    Guest Guest

    Definitely worth it in my opinion. I will have worked for about 0.8 this academic year. I decided to pay into the new career average pension scheme. At age 66 this has already given me about £500 per year index linked additional pension for life. Avery good deal! I also transferred into TPS an old LGPS pension that was worth about £53 a year at age 65 as a result of past dinner duties!
    richest1 likes this.
  5. Sundaytrekker

    Sundaytrekker Star commenter

    I’m doing it. It’s 7% of my salary that I don’t pay tax on and , like paulstjohn, I’ve already earned more than £500 a year extra for when I reach state pension age. Well worth it in my opinion.
    richest1 likes this.
  6. phlogiston

    phlogiston Star commenter

    It's what I'm doing in my new place of work.
    Basically the pension fund is some painless saving.
    richest1 likes this.
  7. diddydave

    diddydave Established commenter

    You contribute 7.4% as a one-off payment.
    You get 1/57th added to your pension, paid every year from NPA. (1.75%)
    On just those basic figures you'll get your money back after about 4 years of pension...BUT...
    Those payments are protected against inflation.
    You get an additional 1.6% on top (and this is for any career average pot you have already accumulated)
    So can you find any savings scheme that can, safely, offer 3.6% interest (after tax)?
    your 7.4% isn't taxed (though perhaps your total salary is below the threshold), so the net effect to you is more like 5.9%...

    You may want to look at putting in for the "Faster Accrual" and even the "Buy-Out" options
  8. richest1

    richest1 Occasional commenter

    Yes, thanks, there are some great points there that I hadn't thought of.

    Another question, what about if I move from 1 school in September to another the following year, will this pension continue or is there another set up?

    What I mean is does this second pension follow you around or not?

  9. 50sman

    50sman Lead commenter

    Your status I’ll change on TP to retired and reemployed

    You don’t mention if you are taking arb or not

    On one day a week it should not matter but if you are taking full age retirement remember that your pension and salary cannot exceed your salary of reference.

    If you are taking arb make sure here is a break of at least one day in your contract and you can earn however much you want
    richest1 likes this.
  10. richest1

    richest1 Occasional commenter

    I retire at NPA age 60, on a final salary pension.
  11. 50sman

    50sman Lead commenter

    You will be given a salary of reference
    Check your pension and any earnings in teaching will not exceed that figure

    You also need to tell TP you are working - don’t know which form.

    Ring TP to clarify.

    I took arb for personal reasons age 56

    I have worked on supply and part time since then but am finally giving up this summer aged 60
  12. richest1

    richest1 Occasional commenter

    Thanks again, i will not exceed as I will work for just 1 day per week.
  13. 50sman

    50sman Lead commenter

    Just think we took our O levels at the height of roller mania (1975) and our A levels at the dawn of punk (1977)

    Don’t know if you took pgce straight away (1981) but I’d you did Charles and Di got married at the end of it - there were riots in the streets and Ghost Town was number 1.
  14. richest1

    richest1 Occasional commenter

    No it was in 1991after family.

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