Reflections on reaching for retirement
60+ and still teaching?
The end of the final salary scheme on 1 April 2022 presents you with an opportunity to take your final salary pension, continue working AND get paid more.
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Or is it…
The final salary scheme can no longer be added to after March 2022 but that doesn’t mean the end…your future salaries will still be used in working out the pension – so make sure you know how to get the most out of that!
When can I get my hands on the pension?
In this video I look at the confusion surrounding the changes to the state pension age and the minimum ages that you can access your teachers’ pension
https://bills.parliament.uk/bills/3032
The start of the legislation needed to implement the remedy to the age discrimination caused by the transition from Final Salary to Career Average pension schemes.
If you are over 60 and haven’t already started taking your pension you would suffer from abatement if you took it all. However, taking phased retirement benefits does not lead to abatement.
You could work a day less and get paid more than you are now.
Contracted Out
Up until 2016 Teachers were ‘contracted out’ of the additional state pension and so many do NOT qualify for the full NEW state pension…I explain.
If you retire at your Normal Pension Age and carry on, or return to, working then your pension may be abated (cut!).
Here I explain why and how to avoid it.
You want more?…
There are three ways to put more into your pension and to get more out of it. This presentation looks at the relative costs of Faster Accrual compared to Additional Pension.
One method (method B) used to calculate your final salary looks at your last 10 years salaries.
These are revalued using inflation, which often makes them worth more than you are currently earning!
When teachers have periods of pay freezes and below inflation pay rises this method often produces a better final salary pension calculation.
This spreadsheet will let you enter your last 10 year’s salary figures and to check what is going to happen over the next few months and years to your Final Salary Pension. If it is going to drop then you should seek advice on whether opting out would be appropriate.
Retiring next year, or in 30 years – the pay freeze could bomb your pension.
Fix it for £1
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