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Retirement

NUT members can benefit from pre-retirement planning advice. This maybe some time off for you although teachers are used to planning! Pension and retirement changes are coming into place very soon. The NUT were successful in protecting the pension rights of teachers aged 50.

Currently, teachers at the age of 50 as of the 1/4/12 will receive 1/80th. Teachers at the age of 55 as of the 1/4/12 will receive 1/60th. However, anyone around the age of 49 during this time, will go through a transition into the new scheme.

As you might expect, we are expecting a lot of questions from September! The NUT cannot offer financial advice but we highly recommend Alan Fenn at Lighthouse alan.fenn@lighthousefa.co.uk

He can work through your figures and give advice on scheme benefits and what your options are re The Hutton Report proposals, sick pay, ill health, retirement and death benefits and financial planning considerations within your pension scheme.

Best of all he is able to offer complementary meetings and will visit staff individually or come into your school and speak to all staff (including additional meetings for Support Staff)

Alan Fenn

Professional Financial Adviser - Specialist Adviser on the Teachers’ Pension Scheme. Book a School pension presentation or take advantage of a wide range of other financial planning services including: 

  • Investments
  • Savings
  • Protection for you and your family

The value of investments can fall as well as rise, you could get back less than you paid in. Office: 01692 670721 Mobile: 07799 880177 Email alan.fenn@lighthousefa.co.uk A Teachers Tale After carrying out a teachers pension presentation at a school in Norfolk a teacher contacted me to discuss her own pension concerns. Having established that she did not wish to carry on working full time as a class room teacher through to her normal retirement age of 60 she wished to find out what impact this would have if she chose to retire early than the normal retirement age. Therefore we sat down and talked about what was important, work, health, family, and leisure but most of all the transition from work to retirement. So planning for retirement does provide some concerns of which the teacher’s main concern was wanting to establish the amount of monthly income her pension would provide her, so she could look forward to the lifestyles that she wished for in retirement. So when talking about retiring early which has an impact on the amount of pension income and lump sum benefits, and by taking retirement from the age of 57 and 7 months meant that her pension would be reduced by 10.06% of which she was not impressed! So after calculating the net monthly pension this was lower than she was hoping for. We continued to talk and I highlighted that she should consider reducing her hours to three days a week (point 6) and carry on working until a date closer to her 60th birthday, however she asked what impact would this have by reducing my hours and having a part time salary? After explaining that her pension calculation would still be based on the full time equivalent salary or the average salary and that she would not build up service for the days when she is not working, along with the school agreeing to this she in fact worked for another two and a half years past her 60th birthday as she wished to retire at the end of the academic year. This meant there was no actuarial reduction of her pension benefits and her monthly pay from her pension was lower by a net amount of £37per month and her lump sum by £1,674 of which this was a small price to pay for her reduced working hours, of which she was greatly appreciative of the help an information provided as well as the schools cooperation to accommodate her part time request. In conclusion this teacher was unaware what she could put into place regarding her work loads and the impact on her pension if she had not spoken to us ,it also helped her moving from full time work to three days a week to now none, of which she is very happy retired teacher!!   Any members who are thinking of early retirement should first read through the guidance below. You can also check on the Teachers Pension Website at: https://www.teacherspensions.co.uk/   Actuarial Reduced Pension (ARP): 

Revised Teachers’ Pension Scheme Actuarial Reduction Factors

Premature Retirement Compensation (PRC): 

Premature Retirement and Redundancy – National Union of Teachers

Retirement on grounds of ill health: Retirement  due to ill health General Guide