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TP pension annual option?

Discussion in 'Retirement' started by Rach05, Nov 20, 2019.

  1. Rach05

    Rach05 New commenter

    Hello all, I was reading some old threads as they are very informative but just saw a couple of points that I wonder could anyone explain please?
    Can you choose to take your TP annual pension in one go as one pp seemed to be saying rather than monthly?
    Also when people say they are leaving teaching but not going to take their pension yet, I wonder why not? Once you leave doesn't your ( lump sum)pension just sit there, not acruing interest and you miss out on the annual pension too each year it's not taken? I haven't retired yet , due to go Aug 2020!!
    Thankyou :)
     
  2. phatsals

    phatsals Established commenter

    When you leave the scheme, or 'opt out' your pension continues to increase each year by CPI. No, you can't take your pension annually, it is paid each month on the day before your birthday, ie, birthday 6th, paid on 5th of each month.

    Good luck with your retirement, not long to go.
     
    border_walker and Rach05 like this.
  3. Rach05

    Rach05 New commenter

    Thankyou for your reply and good wishes
    Ah..thankyou, my pension stopped on Aug 31st as our private school owner opted out of TP...ahem....so my deferred pension this year, i was imagining, would have no financial increase at all but you think it will def be larger than if I had taken early retirement 2019 as opposed to 2020? Thankyou for the good wishes..I have a countdown clock :)
     
  4. diddydave

    diddydave Established commenter

    Your deferred pension will increase by CPI each year until you take it...and then...it will continue to increase by CPI each year.

    If you take your pension early you get less (actuarially adjusted benefits (AAB)) but this is cancelled out to a large extent by having it for longer. For instance on the final salary scheme if you take it at 55 you get 81.1% of the full amount that you would have got at 60. I have done a spreadsheet to show the implications here:
    https://docs.google.com/spreadsheets/d/1MmQ1h1AwCoC5IggRdVai4L0aBu5j0subZHCkVe3JNOw/edit?usp=sharing
     
    Rach05 and border_walker like this.
  5. phatsals

    phatsals Established commenter

    Could I suggest you check up your service record on the TPS site, just to be sure it is all up to date. It's better to do this now rather than try to fire fight close to your retirement date.
     
    Rach05 and border_walker like this.
  6. Rach05

    Rach05 New commenter

    Thankyou both for your great advice..yes I have looked a few times and all seems to be as it should on website.
    That is good to know re the ever increasing pension! :)
     

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