early retirement from teaching - advice appreciated

Nenen

I am in a tricky situation and would appreciate some advice please. I am a teacher and my husband has just been diagnosed with a serious illness. I need to work fewer hours (I currently work at least 55 hours per week) in a less pressurised environment so that I can care for him and keep well myself. I have managed to secure a part-time job in another field entirely, starting in the autumn, but the pay is a lot less. In order to be able to manage to pay the mortgage and bills, I need to start taking my pension early. I realise that this will decrease the monthly amount plus lump sum I would get if I waited until I am 60 (or older) but we cannot manage without my pension soon after I start my new job.

My husband will get some sick pay and then, if he cannot continue to work, he has some insurance to cover some of his loss of earnings. However, what we had not anticipated was that, as well as his loss of earnings, I would also lose earnings in order to care for him.

I will be 55 in October 2013 and need to start drawing my pension on my 55th birthday. I have around 14 years paid into the teachers pension plus 2 years (just over £3,000) in Equitable Life (paid in whilst working in a private school 10 years ago).

If anyone has any helpful advice I would be most grateful.

jem16

Nenen wrote: »

I realise that this will decrease the monthly amount plus lump sum I would get if I waited until I am 60 (or older) but we cannot manage without my pension soon after I start my new job.

Yes your pension and lump sum will be reduced. At age 55 the calculation would be 0.794 x whatever your pension would be. So 14/80ths of your final salary x 0.794.

If anyone has any helpful advice I would be most grateful.

Not really much else to offer. It might have been better if you could have continued teaching in a part-time basis. Phased retirement certainly was an option where you could have some of your pension and continue to work. I'm not sure if this still is an option.

atush

How serious is his illness? Does he have a pension he could take early instead? Taking your teachers pension so early will reduce you income for life and is something to be avoided if you can.

Did you already quit your job? Can you not teach part time instead? Have you applied for carer's allowance?

quotememiserable

atush wrote: »

How serious is his illness? Does he have a pension he could take early instead?

Good point. Even if he's not old enough to retire, he could apply for his pension on grounds of permanent ill health in which case it can be paid early, normally on enhanced terms.

Nenen

Many thanks for your replies. My first option was to teach part-time so I asked to do this some weeks ago but my employers refused to consider it. I did try looking for a part-time job in another school but nothing suitable came up in our area in time for me to resign to be able to leave at the end of this term. The job I went for (and got) was the best I could do and I am due to start the new job in September. At the moment my husband's prognosis is uncertain. He is becoming progressively worse but currently I don't think I'd be eligible for carers allowance. However, this is something useful to consider in the future.

My husband works 2 days per week for a local authority and the other three days he is self-employed. He does have some critical illness insurance to cover his self-employed work but that hasn't kicked in yet. I need to sort that out asap and see what possibilities there are for him to take early retirement on health grounds from the LE. However, I have been told that is much more difficult to get now than it used to be.

Does anyone know if I could move the £3,000 currently in the Equitable Life pension into my teachers pension fund?

xylophone

Does anyone know if I could move the £3,000 currently in the Equitable Life pension into my teachers pension fund?

This would have needed to be done within 12 months of your joining TPS
https://www.teacherspensions.co.uk/members/resources/~/media/Files/Documents/Forms/Transferinv10.ashx

quotememiserable

Nenen wrote: »

I need to sort that out asap and see what possibilities there are for him to take early retirement on health grounds from the LE. However, I have been told that is much more difficult to get now than it used to be.

There are scheme rules and there are trustees to ensure fair play, and an ombudsmen if you don't think there has been. Since there hasn't been a change to the scheme rules I don't see why it would be harder now than previously.
These questions can certainly be one where judgement is called for from the trustees - its a job I did for several years. The key points normally are establishing the health issue is permanent (you need a doctor to back you on this) and that he's not capable of doing his job or another like it except at significantly reduced pay.

xylophone

Is your husband entitled to DLA? https://www.gov.uk/dla-disability-living-allowance-benefit/what-youll-get

Pollycat

Can't help on the pension issue but i do agree with atush & xylophone that it would be a good idea to check out what benefits you both might be entitled to.