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Early Retirement (teachers pension scheme) Help Please

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Hi

I am just after some information if possible...I am writing on behalf of my mother who is 57.5yrs old.

She is currently on paid leave due to ill-health and is going through the process of occupational health. At present it is unclear whether ill-health retirement will be awarded until further investigation is carried out.

However, i feel that my mother has conceded that one way or another she will end up retiring early.

My question for anyone in the know, is firstly (irrelevant of ill-health) can she do this at her age?

Secondly, how significant will the effect on her lump sum and annual pension be as a result of retiring 2.5yrs early?

She has 30 years service in the final salary TPA scheme.

I realise exact figures cannot be given but any experiences of something similar or any information would be helpful.

thanks in advance

Comments

  • Oldernotwiser
    Oldernotwiser Posts: 37,425 Forumite
    I took ill health retirement from teaching when it was easier to do than now. If she can possibly do it on the grounds of her health she'll be better off as she may even be given some extra years, rather than lose a percentage. I'll try to look out my pension booklet and post again, otherwise phone the TPA and they'll send her the details.
  • My husband took early retirement from Teaching in 2004 when he was 55. Although he went because of his health, he was not able to get ill-health retirement (not easy these days) and went on Actuarilly Reduced grounds instead. Anyone who has reached the age of 55 can do this but it does mean you will lose a percentage of your pension depending upon your age.

    My husband lost about a quarter of his pension because he was going five years early, your mother´s percentage lost will be correspondingly less.

    http://www.teacherspensions.co.uk/employers/employers7.htm

    Hope this helps.
    (AKA HRH_MUngo)
    Member #10 of £2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
  • Oldernotwiser
    Oldernotwiser Posts: 37,425 Forumite
    I'm glad you posted that as I can't find my details. I retired in 95 and was given double the number of years that I'd paid in for. It was much easier then.
  • Thanks for the link...it was exactly what i was after.

    Is the annual pension calculated tax free or would we have to deduct tax from this figure? If not roughly what % is the tax?

    thanks in advance
  • Oldernotwiser
    Oldernotwiser Posts: 37,425 Forumite
    lightspeed wrote: »
    Thanks for the link...it was exactly what i was after.

    Is the annual pension calculated tax free or would we have to deduct tax from this figure? If not roughly what % is the tax?

    thanks in advance

    I'm not sure if I've understood your question but the calculations are based on gross income and then the pension is then taxed just like any other income.

    ie. Salary £40,000 gross, pension calculation - 30 years service is 30 x 80ths = £15,000. Deduct the current personal allowance from £15,000 and the difference is the amount on which one pays whatever is the going rate of income tax.

    Sorry if this wasn't what you meant.
  • lightspeed
    lightspeed Posts: 246 Forumite
    Yes thats fine thank you.

    cheers
  • If she is in the trade union they will advise (they have helped me a lot.)
  • Yes, my husband found the NUT very helpful too.
    (AKA HRH_MUngo)
    Member #10 of £2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
  • whitesatin
    whitesatin Posts: 2,102 Forumite
    Part of the Furniture 1,000 Posts
    I took early retirement (ARP) last year when I was 56. Not because I was ill, only sick to death of it all. LOL.

    I do know it is really difficult to get early retirement on health grounds these days.

    I used an ARP calculator on, I think, the TP website to work out what my pension would be. I was quite pleased with what I go and I had a good few years less than you mum.

    It does seem unfortunate that if someone is unable to work through ill health that it is so difficult to go on those grounds.
  • jodie264
    jodie264 Posts: 29 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    How is your retirement going. I am thinking of getting my lump and pension. 56 in April and work I'm now in is dying off due to TDA and sypport staff cuts (I'm self employed and train teaching assistants, support trainee teachers and do some assessment work) The support staff training has gone from April, the rest will prob continue but the cut work was my bread and butter. Checked pensions online today and would get lump sum of 27.000 and pension of 9100 or there abouts. What do you reckon?
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