Goverment pension, reducing hours, what to do !

cooperboy123

Hi there.

I would like some advice please !

I am 63, receive the old age pension and work 30hrs a week in a primary school.
I would like to reduce my working hours but this will obviously have an impact on my local government pension which is based on final salary. I have the choice to take the pension now and continue working or take the pension, continue working but also start paying into a new government pension (but obviously based on my reduced salary as doing less hours)
All the options will have implications on tax. I hope to continue working for at least another 3 years but as above would like to gradually reduce my hours.

Has anyone got any advice on the best approach? Is there anything I should of shouldn’t be doing here ?

Many thanks

jem16

cooperboy123 wrote: »

I would like to reduce my working hours but this will obviously have an impact on my local government pension which is based on final salary.

Your pension is calculated on the full-time salary and not the part-time salary.

Reducing your hours will simply see a reduction in the years of service that you accrue. So if you work half a week over the last 3 years you will only build up 1.5yrs of service as opposed to 3yrs of service but your final salary is still the full-time equivalent.

http://www.lgps.org.uk/lge/core/page.do?pageId=206781