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)
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.
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.
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.
Early Benefits and AAB All-in-one calculator.
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/
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.