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Retiring Early in 2019

Discussion in 'Retirement' started by Gainingcontrol, Oct 28, 2018.

  1. Gainingcontrol

    Gainingcontrol New commenter

    I'm glad you feel the benefits of leaving hairyfairy. The scheme is only really of benefit to those who were 55-56 when it was offered as it takes a year before you exit. My main motivation other than offloading the pressure is to crystallise my pension. There is no pension fund, only a 'scheme' based on government promises funded from future taxation (like the old age pension)! When the international debt crisis hits all such promises will be at risk, including the risk of bank depositor bail-ins! 'Four birds in the hand are worth 5 in the bush'.
     
  2. paulstjohn2014

    paulstjohn2014 Occasional commenter

    Gainingcontrol you seem a bit obsessed with an apocalyptic debt crash! Calm down!
    I wish you well with your plans.
     
    catmother likes this.
  3. catmother

    catmother Star commenter

    Indeed. Gainingcontrol seems to have joined TES for the sole purpose of telling us all about his/her two pensions and then,telling us that it's all going to turn to s**it!
     
  4. Gainingcontrol

    Gainingcontrol New commenter

    Well that's a bit catty of you! I am only explaining the motivations behind my decision to try to retire early. I am genuinely very concerned about the size of the international debt crisis. I worry that I will not get retired before things really start to unravel. There are so many things that could spark it all off. I hope I'm wrong, but the figures speak for themselves. Most people seem unaware that western governments passed laws in 2016 allowing for bank bail-ins of depositors in the event of another 2008 type financial crisis.
     
  5. eljefeb90

    eljefeb90 Senior commenter

    I thought £85,000 was protected in each account? Double that in a joint account.
    Well, yes, a financial crash could happen. Personally, I am more concerned about the economic consequences of Brexit, but each to his own obsession.
     
  6. Gainingcontrol

    Gainingcontrol New commenter

    When the next international debt crisis hits it will be much greater that the last one, as debt levels are much higher due to governments (taxpayers) absorbing the cost of the last one. Thanks to all the QE since then it will be impossible for governments to honour their £85,000 promises, that's why bail in legislation was enacted throughout the EU in 2016: http://blogs.reuters.com/hugo-dixon/2016/01/04/eu-enters-brave-new-world-of-bank-bail-ins/ Brexit is a sideshow to distract us from the reality that we (and our children & grandchildren) are collectively on the hook for the combined debt of all the EU countries. We are debt-slaves no matter how it pans out. The EU is an illusion built on debt, that is unsustainable.
     
  7. Gainingcontrol

    Gainingcontrol New commenter

    Well that's another item ticked off my 'last time' list! The Christmas mock & other exam timetables are just finished today and ready for distribution. This year's to do list is now smaller than my done list!
     
  8. Gainingcontrol

    Gainingcontrol New commenter

    My RQT replacement post has been shortlisted to 6 with interviews due next week. News of my approaching retirement has now begun to filter out among the students. One 1st former asked me what I was going to do when I retire. When I replied 'research, travel and writing', he asked 'are you going to be the next Indiana Jones?'. Like that -sounds fun!
     
  9. Gainingcontrol

    Gainingcontrol New commenter

    With my pension application form submitted via school just before Christmas I am now starting to feel that I am on the final straight. There are around eleven teaching weeks to go until the end of March. I am glad to have the final hectic first term of the year behind me.
    I have decided to take the maximum pension and minimum lump sum in my teaching pension (at 1:12) and the maximum lump sum (at 1:20) and lower pension in my bank one. Retiring and claiming my pensions nearly four years earlier feels like a well earned overtime claim.
    The fact that final salary pensions are index-linked, as opposed to years of 0% pay rises, will be a positive in the coming years. Looking forward to starting my Easter holidays early this year!
     
  10. eljefeb90

    eljefeb90 Senior commenter

    @Gainingcontrol said,'Retiring and claiming my pensions nearly four years earlier feels like a well earned overtime claim.
    The fact that final salary pensions are index-linked, as opposed to years of 0% pay rises, will be a positive in the coming years. Looking forward to starting my Easter holidays early this year!'
    Exactly! After years of a static salary, combined with deteriorating conditions and increasing workload, taking ARB is indeed like a bonus for putting up with all the rubbish. It helps me look back on my career with less rancour.
     
  11. eljefeb90

    eljefeb90 Senior commenter

    Congratulations. And what a great time of year to retire with the Spring and Summer ahead of you.
     
    Gainingcontrol likes this.
  12. Brianthedog

    Brianthedog Occasional commenter

    My task this holidays is to complete and submit my early retirement application. I'll be retiringfficially on 31st March 2019. Before we broke up last week, I was able to sign a new contract to start at the same school with a 2 day break in contract after the Easter hols, going down to 3 days per week. I won't be as financially secure as you, Gainingcontrol, because I'll only have a little over 27 years service, but it's more than enough to live on. I will be taking the enhanced lump sum and reduced pension. I'm hoping to continue to work until I can collect my state pension, but if I can't, or don't want to I'll still be relatively ok financially. All I need to do now is decide whether to rejoin the pension scheme once I return to work in order to access the death benefits.
     
    Gainingcontrol likes this.
  13. Sundaytrekker

    Sundaytrekker Star commenter

    I would say yes to your last query and not just for the death benefits. I have done two years part time and earned a further £490 so far as additional pension under the career average scheme. If I carry on till state pension age that will be closer to £2k per year. Well worth having for the amount paid in. And, of course, those contributions are money that would otherwise be taxed as well.

    You can decide later, however, as they will automatically opt you in and you will have to opt out if you don’t want to earn new pension.
     
  14. Gainingcontrol

    Gainingcontrol New commenter

    Death benefits are easily replaced with a basic life insurance policy. I took an open ended one out for £150,000 when I was 49. I'll keep paying the £26 pm premium even though my children are all now young adults.
    I intend using my freed time, qualifications, skills and past work experience to engage in activities that add value to the lives of others. This includes practically supporting my adult children in their early careers, supporting elderly parents in their later years and engaging in productive and enjoyable hobbies that include reading, writing, teaching, photography and travel connected to my interests in history and theology.
     
  15. Gainingcontrol

    Gainingcontrol New commenter

    Everything seems to be on track for leaving at the end of March. 43 working days to go! It feels slightly surreal as it approaches; there is still so much to get through on a daily basis. People keep saying 'I suppose you're winding down', but it feels like there is more to get done before the final day than there is time left to do it! My planning responsibility posts have yet to be advertised to the staff, and they are not roles that you can just coast at.
     
    PeterQuint likes this.
  16. diddydave

    diddydave Occasional commenter

    Congratulations, your situation sounds very similar to that of my wife's and my own. Out of interest why did you decide against bulking up a private pension, using the freedoms to withdraw it next year and delay taking your pension so it wouldn't be ARB reduced?
     
  17. Gainingcontrol

    Gainingcontrol New commenter

    It's a balance of risk. I believe four birds in the hand are worth five in the bush. Private/company pension funds are stock market invested with a degree of risk to the whole fund. Despite ARB, the bank pension is a final salary scheme that is greater than my teaching pension. I will be paid the pension for 3.5 years more to help offset the ARB. That lump sum calculation is x23 the pension given up (tax free) and I would be paying 20% p.a. tax if I took the increased pension option. I also value that degree of liquidity as I have other plans between now and state pension drawdown.
     
  18. diddydave

    diddydave Occasional commenter

    Yes, my wife is very risk adverse too - however considering you could pay into the private pension fund on 31 March and withdraw it on 7 April you'd have to be spectacularly unlucky to hit that bad a crash in a week. (And in such a financial melt-down I don't see savings accounts being immune)
    As the teacher pension loses 5% a year of both lump sum and annuity we decided to take the route of delaying its takeup. I think the break even is 14 years for us.
     
  19. Dorsetdreams

    Dorsetdreams Occasional commenter

    I'm enjoying listening in on this and I'm learning a little - so please keep it up.

    Can I suggest that:
    isn't a very helpful statement? When do you actually lose 5%? And 5% of what? (And isn't it in fact 4% per year for taking it early?)

    As noted, you actually gain overall for maybe the first 14 years.

    You have to live forever to actually feel the whole 20% loss suffered by taking the full 5 years of ARB.
     
  20. Brianthedog

    Brianthedog Occasional commenter

    Yes, it is 4% a year, but if you offset that against what you'd pay in pension contributions over those years and what you gain by taking ARB, it's years before you end up losing out.
    I'm retiring 6 months early, so will lose 2% only, which equates, for me, to £200 annually on my pension and £500 approx in my lump sum (I'm taking max lump sum/min pension). I currently pay £250 monthly pension contributions. It's a no brainer!

    I had decided to continue working on a new part time contract after Easter for a few years, but I'm so disillusioned with the state of education now that I may well finish completely in July, or as soon after that as my school can replace me (anyone fancy a 3day Senco job in the North West??.)
     
    Dorsetdreams likes this.

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