pension advice needed please !

seven-day-weekend

My husband took early retirement from the Teaching (Final Salary Pension Scheme). As he left five years early, his pension and lump sum were reduced. He had paid into the scheme for nearly 24 years.

Even with the reduction he still was entitled to around £7k pa pension and a lump sum of £23000.

Hope this illustration helps!

james3333

bloody hell, thats great !
how much was he paying in each month for 24 years ?

ReportInvestor

Your 25% tax free lump sum & reduced pension is absolutely standard, james.

6% pa of salary was the usual contribution rate for teachers. 24 years with no increased contributions would have given a pension of 24/80 final salary and a lump sum of 72/80 final salary = 3xthe annual pension to be paid.

The teachers' scheme is a 1/80 accrual rate (i.e. 40 years => a pension of 1/2 final salary - most companies operate 1/60.