Advice needed with Teachers Pension

Delboy

Can anyone advise? I have a teachers pension with 14 years service. I have not taught for over 20 years and am now 57 years old. I have requested a Pension statement which states that I am entitled to around £10,000 pounds lump sum and a small monthly pension at this time. Is it worth leaving it for another 3 years until 60 years old and getting 100% of the then total or taking it now at around 90% of that figure and go on a cruise?? Please help THANKS

Pal

Entirely up to you. From a monetary point of view it will almost certainly be cheaper for you to wait until you are 60, assuming that you live to your average expected age (about 82 at the moment)

If you think you will die within the next 10 years, and don't want to wait for the cruise then go ahead and take the money now.

If you are still working, I believe that it is usually folly to start drawing a pension while you are still in full time employment, as it significantly reduces your income in retirement just to provide extra income you probably don't need when you were working. Remember that a cruise ends fairly quickly but you have to live the rest of your life on your pension.

mattyg1

Hi
Can anyone help?
I am a supply teacher who is not currently looking for a permanent post.
However, my agency provides no pension contributions and I am reluctant to invest in a private scheme in the current economic climate.
I would be grateful for any pension advice.
Matt

mattyg1

:money:Hi
Can anyone help?
I am a supply teacher who is not currently looking for a permanent post.
However, my agency provides no pension contributions and I am reluctant to invest in a private scheme in the current economic climate.
I would be grateful for any pension advice.
Matt

nw_man

mattyg1 wrote: »

:money:Hi
Can anyone help?
I am a supply teacher who is not currently looking for a permanent post.
However, my agency provides no pension contributions and I am reluctant to invest in a private scheme in the current economic climate.
I would be grateful for any pension advice.
Matt

Why are you reluctant ? Surely the market is down right now, therefore a better time to buy for the long term ?

How old are you ?

dunstonh

I am reluctant to invest in a private scheme in the current economic climate.

you dont say what investments you would use as pensions can invest in a wide range of areas. I am going to assume you mean 100% UK equity only. In which case, do you think waiting for it to go up another 20% before you pay into it is the best option? Therefore missing out on the recovery?

If you dont have the risk profile for 100% UK equity then spread it around and use lower risk investments.