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Taking early retirement

Discussion in 'Workplace dilemmas' started by bwilberforce, Jan 7, 2019.

  1. onmyknees

    onmyknees Established commenter

    Get in contact with Wesleyan. They are a company who specialise in helping teachers (and other professions) plan their retirement. They can access your details on TP website, with you, in the comfort of your own home and they are free of charge. They’ll go through all your financial options; give you accurate figures to work with and will support you to come to an informed decision that you are confident with.
     
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  2. bevdex

    bevdex Star commenter

    I'm going at the end of this academic year:).... at 59 and a half (that half is important - it's another 2%!)
     
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  3. zannar

    zannar New commenter

    I am going at Easter when I will be 59and3/4
     
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  4. Jamvic

    Jamvic Senior commenter

    zannar Mole perchance?
     
  5. marymoocow

    marymoocow Star commenter

    Go as early as you can, no one knows what is around the corner and how active do you think you really will be in your late 70's and 80's? My sister has terminal cancer at the age of 46. My mum is the second generation to get vascular dementia in her mid to late 60's. I didnt think I would retire as early as 55 before, but when I think of my sister and how at 55 I may only have 10 dementia free years, live life to the full I say.
     
  6. mothorchid

    mothorchid Star commenter

    @marymoocow I just wanted to say I'm sorry to hear of your family's worries.
    And to agree - we don't know what's round the corner, so carpe diem is probably a good approach. No-one ever lies on their death bed and says "I wish I'd spent more time at work."
     
  7. chelsea2

    chelsea2 Star commenter

    I went at 56.
    The best decision I made.
    I was sick of work - eat - sleep - repeat, and had a long list of things I wanted to do (as well as things I needed to do!), and wanted to be young and fit enough to still do them.
    I think you know when it's time to go - don't fight it.

    I do some one-to-one and small group work for 4 hours a week for some of the year, which adds a not insignificant sum to my pension.

    These are some of the best years of my life. Life truly is a beach! :cool:
     
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  8. diddydave

    diddydave Occasional commenter

    Yes, I went at 51 - but everyone's circumstances are different so you need to lay out what expenses and commitments you have and see if you have enough to get you through.
    You sound the same age as me (b.1967?) so will have bits of both pensions.
    I stopped teaching in 2017 aged 51 but my wife was 54.
    When looking at where you can get income you have several periods you need to consider:

    Now (51) to 55 - No access to pension, only savings - so do you have 4 x annual spending
    55 to 60 - Access to pensions but the teacher's would be actuarially reduced so we put more than 5 years annual spending into the Prudential Free Standing AVC's and are taking out lump sums each year (~£16,000 a year is essentially all tax-free) but that is only possible now my wife is 55. In an emergency we can start the wife's teacher's pension to get more.
    60 to 67 - The final salary portion of the pension
    67 to death - The career average portion + state pension

    We also took out insurance as we lost the death benefit protection from not being in the pension scheme any longer.

    You can top up in the short term - I mark exam papers and that pays for our golf subs and holidays (taking the first one during term time made us quite giddy!).
     
  9. TheUmpire

    TheUmpire New commenter

    Whoever you go to for advice on retiring early, seminars, etc..ensure that they are approved by Teachers Pensions or your teaching union. Avoid unapproved private companies with names or branding that suggest they are somehow approved or endorsed by Teachers Pensions - they're not! Wesleyan are approved by NASUWT and other teacher unions have their own approved associates such as Aviva. This point was emphasised in a warning issued by the NAHT:

    WARNING: Please be aware that there are private providers of retirement courses that are not necessarily conversant with all the options, up to date provisions, changes and proposals related to the Teachers' Pension Scheme.

    NAHT was a full member of the TPS Review Groups and continues to represent members in national consultations. Thus, NAHT has the most up to date information, knowledge and advice. The same cannot be said of private providers because none are part of any consultations.

    Furthermore, despite what may be intimated no private provider is approved or recommended by the Department for Education or Teachers' Pensions.

    Please beware before you or any of your colleagues sign up on such courses. Wrong information may lead to wrong choices. Colleagues should defer to their union pension experts.
     
  10. magic surf bus

    magic surf bus Star commenter

    I stopped teaching at 54 and retired at 55. From 50 to 54 I did supply and had a temporary 12 month post where I averaged 0.6 fte and where I wasn't contributing fully to the TPA. I'd been teaching across 31 years.

    When I looked at the numbers I estimated that the later period I spent outside full time work has cost me about £100 a month in pension. I also looked at retirement at 55 as opposed to 60, and worked out that in terms of total pension benefits received I would be into my mid-70s before the financial advantage of going at 60 would become apparent. That was way too long to wait. Making up the £100 a month shortfall by other means has not been difficult either.
     
  11. baitranger

    baitranger Occasional commenter

    Just for the sake of balance I will make a few points. You don't lose only 4% a year if you go at 55, ( in the final salary scheme ) because you also lose the years you would have done up to age 60. Therefore if you retire at 55, you lose 20% of what you've got so far in your pension PLUS five years . Someone who has , say , 30 years' service will lose about 6 years PLUS the five years they could have done until age 60 = 11 years. If , say, the person's final salary was £40,000, they lose about £5,500 a year for the rest of their lives. So,,, if someone leaves at 55 and lives until 87, which is about average for a teacher, that person loses in total £175,000 less the pension they receive from 55-60. Of course, you also need to deduct the difference between the reduced pension and the person's pay for five years.
    If someone is desperate to leave at 55, the figures are of only academic interest, of course, but if we are looking at the money , it's better to go on working.
     

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