Impending Retirment

denwyn

In 12 months i reach retirment age, i work for the local auhhority as a school caretaker for 27 hours a week,on top of this i get a small monthly pension from a previous full time job with another local authority,its not a huge pension, £260 a month, but it has allowed me to get by on my caretakers pay. I am giving some thought to staying on in my caretakers job after retirment, but am not to sure on the money aspect, i would get £260 per month from my previous pension, plus £160 per month from the Caretaker pension, plus £532 per month state pension. I could get by on this ok, as i have no mortgage ect. If i was to work past retirment in the caretakers job for a max 2 years i do understand i would pay more income tax, do i still pay National Insurance, and i take it my pension deductins stop as well. I know its 12 months to go but i want to make a decesion ASAP. Any advice appreciated. I plan to save all of the wages from my caretakers wage should i work past retirment.

molerat

From http://www.lgps.org.uk/lge/core/page.do?pageId=10468919

Default Retirement Age

The Government has confirmed that it will remove the default retirement age so that people have more choice when to stop working. Currently the default retirement age enables employers to make staff retire at 65 regardless of their ability or desire to continue working, but the Government is changing this so that employees will have more choice on whether to retire on reaching pensionable age or to continue working.
The Government plans to phase out the default retirement age between 6 April and 1 October 2011.
The Local Government Pension Scheme (LGPS) already allows eligible employees to be in the scheme up to age 75. If you carry on working after age 65 you will continue to pay into the scheme, building up further benefits. If you draw your pension after age 65, it will be paid at an increased rate to reflect the fact that it will be paid for a shorter time. Your pension has to be paid by your 75th birthday.

You do not pay NI [STRIKE]when working[/STRIKE] beyond SP age.

warwicktiger

or on your state pension

denwyn

Thanks for that, i'm not sure if i want to continue paying into my pension after i retire, i had intended taking it at 65, with the larger lump sum and smaller monthly pension. I realy don't see any benefit in continuing to pay into it for the year or two extra i will work. They don't half make things complex...!!!