Final Salary (3-in-10) Future

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.

Link to sheet

Career Average Planner

This spreadsheet looks at the kind of pension you can expect from the Career Average Scheme that everyone will be in from April 2022.

You enter how many years you are on each of the pay scales and it will, in today’s money, give you an estimate of the kind of pension you can expect at various ages – at 67 in full and also 62 and 57 if you were to take early retirement.

It also provides figures of what that service profile would have provided in the Final Salary schemes.

Link to sheet

SIPP/AVC before Pension

A budget planner that looks at ‘front-running’ a SIPP, or AVC, before taking your pension.

By using the tax-relief and your personal allowance this sheet can help you see what the effects are on your finances of taking the Teacher’s pension later than 55 and instead using a private pension to plug the gap between 55 and when you are ready to take it.

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Lump Sum – Extra

A sheet that looks at how much extra lump sum you can get by commuting some of your pension. With a table to show the effect of taking it before your Normal Pension Age (Final Salary or Career Average Schemes)

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Annual Allowance Calculator

Everyone has an annual allowance, currently £40,000, that can be used on their pensions. However, with defined benefit schemes like the TPS this is not the amount of money paid…it is the growth in value of the benefits. This sheet will tell you how much of the allowance has been used.

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Pension Details

This is the sheet I use the most when looking at an individual’s circumstances. It allows me to enter their salary profile and use it to work out their best final salary figures in a variety of scenarios.

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Rough CA to FS Conversion (McCloud)

The McCloud Age Discrimination result means that almost every teacher who is, or was, in both Final Salary (FS) and Career Average (CA) Pension Schemes is going to be allowed to convert their Career Average Pension back to the Final Salary Scheme that they were in. Most were moved across to this scheme in April 2015, some in the time since.
This calculator will give you a rough idea of how much will be added to their Final Salary pension if they choose to give up the Career Average pension.

Link to sheet

Early Benefits and AAB

If you take your pension before your ‘Normal Pension Age’ the benefits are actuarially reduced to take account that you will be paid them for longer…up to 10 years longer!
This sheet allows you to enter your age in years and months and see what effect it will have on your pension.
Taking benefits early means you are better off for a number of years, the sheet has tabs that also show at what age you stop being better off.
I explain more on this post: https://dfountain.co.uk/lose-20-not-true/

Link to sheet

Historical Salary to 2021 Value

Older salaries are revalued using inflation to being their value up-to-date. This sheet allows you to enter the date and corresponding salary to see what it would be worth in March 2021.
Revalued salaries are used in working out your best Final Average Salary – the best 3 consecutive years from the last 10.

Link to sheet

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