Should I drop my second pension?

philip1988

I am confused where the pension reduction of 28% comes from if the OP takes their pension at 60. Like the OP I am in the teachers’ pension scheme and intend to retire next year when I am 61 having worked as a lecturer for 33 years. The scheme I joined allows me to retire at 60 and the teachers’ pension website shows me what my current lump sum and pension is (though 11/12 year still to be added)
Is it being suggested that by leaving 4 years early this figure will be reduced? I appreciate that the figure could increase if I stayed on, or have I just misunderstood in relation to the OP’s question.

jem16

philip1988 wrote: »

Is it being suggested that by leaving 4 years early this figure will be reduced?

You're not leaving early if your normal retiral age is 60. If your normal retiral age was 65 and you left at age 61 your pension would be reduced.

The OP is in a different situation as she will be affected by the change to public sector schemes where the retiral age will be brought in line with the state pension age.

Thrugelmir

jem16 wrote: »

Assuming no commutation of the career average pension that would give a total of £11,814 in today's figures and well over the personal allowance.

Personal allowance is heading to at least £10k.

If annual pension is in excess of this then part could be drawn as lump sum.

jem16

Thrugelmir wrote: »

Personal allowance is heading to at least £10k.

True but the pension would obviously see an increase as well which is why I based it on today's figures.

If annual pension is in excess of this then part could be drawn as lump sum.

That is certainly an option for although a commutation rate of 12:1 is pretty dire. For a 6 year tax saving until state pension kicks in I'm not sure I'd want to go down that route.