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Retiring early on an Actuarilly Reduced Pension

Discussion in 'Retirement' started by Footyfan1, Aug 24, 2011.

  1. Dunteachin

    Dunteachin Star commenter

    But they are unlikely to let you go at 55, I would have thought. They might raise the earliest you can retire to 60. Nightmare scenario!
  2. Great news! He typed throught gritted teeth.
    With one bound you are free. Don't spend the money too wisely!

  3. The Normal Pension Age NPA was put up in 2007 to 65, and it seems likley that it will go up again soon. However, these changes are not backdated. Anyone who was paying into TPS before 2007 will still have a NPA of 60.
    Teachers starting after 2007 have a NPA of 65, if they retire now at 55 the current reduction in pension is 38.7%.
    More changes are on the way, but these changes will effect future contributions and benifits. Benifits from past contributions will be ringfenced.
  4. Thanks and hope you get sorted soon.
    I will be going on a spending spree, 10 cans of Guiness and a bottle of Jameson's.
    All to be drunk the day before they all return to school.
    Wake up with a hang-over, look at the clock, turn back over with a supercillious smile on the face and feel like I have won the lottery.

    MikeChapman likes this.
  5. I retired 3y ago with a 17% reduction. My mortgage is 0.25% above Base Rate, so 0.75% for a while! Money invested in fixed-term bonds pays approx 3%, so guess what I've done!
    Odd jobs (excluding supply), including a 6month contract in an independent school in southern Spain during the winter, have kept the wolf from the door, but I suspect the next couple of years will be tight. However, my blood pressure is about 50% lower and my garden is producing far more vegetables than it has previously.
    The hardest bit is remembering which day is Monday (or Saturday etc).
    "There are no pockets in a shroud".
  6. Yes it's true.. I have had three colleagues die in the last two years..all under 55. Enjoy yourself..it's later than you think!
  7. Desperately want to retire [age 58] but still have large amount outstanding on mortgage. Really can't carry on with the workload and stress.
    Help .... wish I had planned more sensibly in the past.
  8. Dragonlady30

    Dragonlady30 Star commenter

    I retired on a reduced pension after 37 years and lost just under 10%. By accident, I ticked the box for the reduced pension and enhanced lump sum. When I got the figures, I was tempted to have them altered to unenhanced lump sum and higher pension. Hubby said, wait and think about it.
    On September 1st-my first day of retirement-I attended the funeral of a friend who retired just two years ago. I've left things as they are!
    speaker2 likes this.
  9. I decided to leave full tme teaching when I was 54 because I could afford to. I took a chance that I would get a small amount of supply work to fill the gap. Financially, there is no comparison to a full tme salary but emotionally and socially the difference is staggering. I have time for family and friends and myself. I loved teaching but it was all consuming and I realised I had just had enough.

    On average supply worked out well over the course of the year but I'm glad I didn't have to rely on it to pay the bills. Almost by accident I realised I could take arb at 55 with percentage reduction( which I researched on TP website). The application went through relatively smoothly.

    My main point to those thinking about retiring early is take the time to research your options. As stated by other posters, the 'last time' you do some stuff is priceless and hugely liberating. I may be a bit daft but I also think about the younger teachers who need to get on the career ladder! Teaching has been good to me so I'm glad someone else has a chance.

    The joys of arb + supply - visits from my grandchildren, looking after the garden,cooking for friends, extended holidays,picnics on the beach on Monday afternoons, the excitement of working irregularly. No planning, meetings etc etc. No regrets!
  10. I applied for ARP in July and received a reply five weeks later, rejecting my application. Can I appeal against this and, if so, how do I go about it?
  11. Why was it rejected Jenny? The criteria for ARP seem pretty straightforward.
  12. They said that i would have to wait until I was 60; I am 57 now. Before anyone asks, yes I did apply for ARP, not an ordinary end of service pension.
  13. This is clearly wrong. Consent, from your employer, is needed but can only be withheld for 6 months. You can retire early, but you may have to wait for a period of 6 months from the date at which you first applied for ARP.
  14. The rules state that you are entitled to ARP if you were in the scheme on or after 30th March 2000 and you are over 55. If your employer refuses consent ARP can be delayed 6 months.
    It seems fairly straightforward.
  15. Dunteachin

    Dunteachin Star commenter

    Jenny, this may well be linked to the situation you found yourself in recently.
  16. This is puzzling. To repeat myself, the two qualifying criteria are being a member of the TPS on or after 30th March 2000 and being over 55. The employer's role is only relevant in that administrative ***-up may delay the process not stop it.
    Is there something you haven't mentioned Jenny?
  17. Not as far as I know. The only thing that I can think of is perhaps TP thought I was applying for the ordinary pension, paid at 60, even though I applied on the ARP form. I have asked them this, and I am awaiting an answer. According to the Union, claiming a pension does not depend on anyone 'giving their permission'; it should be automatic.
  18. I I phoned TP today and they explained that I cannot claim ARP at 57, as ARP is only available to those with 'continuos' service: as I had time out to have my daughter I have 'broken' service, and so i am ineligible.
    Is this correct? It would seem to be highly discriminatory to women.
  19. phatsals

    phatsals Established commenter

    I know you are still fighting for your Redundancy, could I suggest your union also request pension payment. It is a facility that's available due redundancy and age. Nothing ventured nothing gained.
    I don't know about the continuous service thing, but it would seem to me that your service was continous until you were made redundant. I've had several colleagues who were made redundant and got their pensions in their 50s. It does need consent of the employer and you have been treated appallingly.
    From TPS employers section.

    [*]Premature retirement - this is available from age 55 on the grounds of redundancy or organisational efficiency. You must certify the grounds for retirement and agree to pay mandatory compensation.
    <h3><a id="anchor5" name="anchor5">[/URL]5. Premature retirement</h3>You can award unreduced premature retirement benefits to scheme teachers aged over 55 whose employment has terminated on the grounds of redundancy or organisational efficiency. Before ARB retirement benefits can be paid the teacher must cease all teaching employment
    Get onto your union and give it a try.
  20. Dunteachin

    Dunteachin Star commenter

    Sounds odd. I was made redundant at 55, so took ARB and had taken about 4 years out of teaching to have children. I was made redundant from a private school, maybe that's the difference. They didn't contest it, but it was none of their business anyway. Maybe it's different with an LEA, I really don't know.

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