Teachers pension and early retirement

Thrugelmir

mrsval wrote: »

They already know for a fact that their is an NI £30 billion + surplus.

Where is this surplus stashed? I'm sure the Treasury would find it very handy.

jamesd

mrsval wrote: »

What I would like to know is why the women of the 1950s are being forced to work an extra 6 years ... Currently only 35 years NI contributions are needed so why are these women being treated so cruelly?

I see that you discussed benefits in Benefits help PLEASE recently, that your husband has claimed his state pension and that you were expecting a redundancy payment of about £13,000. It seems likely that you may be able to get as much as £3,250 of extra free money by paying the £13k into a pension and getting 25% added to it as basic rate tax relief, provided you earned £16,250 or more gross pay this tax year. You'll be able to start to take the money out a few weeks after paying it in. You have a deadline of midnight on 5 April 2017 to get the money into the pension to benefit from this. Please urgently start a topic of your own saying your age, what your P45 says and what savings and credit you have available so we can work with you to get you this free extra money. If your pay was less you can still get free money, just less of it.

Your husband can also get between £720 and £180 of free money a year by paying into a pension and taking money out each year until he reaches age 75. If he did paid work this year he may also be able to pay in more than the £2880 always allowed to get more free money, if so tell us what his last P45 says and its date. You can do the same until age 75 but this tax year your pay means that you have the chance to get more.

I'm more interested in helping you to get the extra money you're entitled to, but on the rest: the women aren't being treated with any cruelty at all, that's the men who on average die about two years younger than the women but still have to wait longer to get their state pension.

There's no reason why a woman fraternal twin should have a younger state pension age than her male twin just because she's a woman. It's simply some women wanting to keep gender discrimination that they gain from.

There isn't a 35 year requirement to get the state pension, it's ten years. 35 years is the number that a person who started working in the flat rate system which started from 6 April 2016 will need to get the maximum flat rate state pension. 35 doesn't mean you can start taking it any more than the thirty years under the old one did. It's just when you still pay full NI but no longer get more state pension increases for it.

People don't have to work an extra six years, they can retire whenever they can afford it, same for men and women. Though at the same age men are still discriminated against because they have to provide for themselves for longer until they reach their state pension age. Unless they need means tested benefits, because the Pension Credit age is the same for men and women, the state pension age for a woman of the same birth date.

jamesd

pauljoecoe wrote: »

That is the sort of direction I was thinking. What I am not quite understanding is that if for the 5 years between 55 and 60 I contribute nothing, why would the pension be bigger - just because I haven't drawn on it for 5 years? I mean it's not like it's going to grow like an invested pension, there is no 'pot' in the teachers superannuation scheme.

There's an actuarial reduction for each year early it's taken, to allow for the cost of paying out for more years. Wait until the normal pension age and there's no reduction.

jerrysimon

Exactly the earlier you take it i.e. the longer it will be paid out, hence the reduction.

You should also check that annual increases will be added between 55-60 to take account for inflation. I only say as with mine if I had taken it even earlier, then inflation increases are not added until I was 55. I was am 56.5 years old it was fine

Jerry

hyubh

pauljoecoe wrote: »

What I am not quite understanding is that if for the 5 years between 55 and 60 I contribute nothing, why would the pension be bigger - just because I haven't drawn on it for 5 years?

Yes, though relative to your 'normal pension age' (NPA) in the scheme. Simplifying slightly, the scheme budgeted the cost of your pension based on you drawing it at a certain age (60 it appears). If you drew it before then (e.g. at 55), then the scheme would be paying out before it expected; ergo, voluntarily quitting and drawing it at 55 makes your pension subject to an 'actuarial reduction' to cover the cost of paying out a pension for 5 more years than originally budgeted for. Draw it at your normal pension age in the scheme however, and no such reduction will apply.

hyubh

mrsval wrote: »

What I would like to know is why the women of the 1950s are being forced to work an extra 6 years

Please don't hijack another person's thread - it's very rude.

jerrysimon

Lol I was trying to work out the relevance of that post.

Jerry

Graham_Ashcroft

It's always best to seek advice on this subject before proceeding. Teachers Pensions have just posted a note on this subject for teachers who are planning to retire that you might find useful:

Training & Teachers Retirement Agency
Our webinars and seminars have started again in September, with seminars taking place in London, Nottingham, Llandudno and Brighton, whilst in October we’ll have events running in Leicester, Ely, Darlington and London. Our webinar programme has re-started, covering MDC and Auto Enrolment. Why not look at our training schedule for more details.

We’ve also received queries regarding seminars for teachers approaching retirement, which are being offered by ‘Teachers’ Planning Retirement’, the ‘Teachers Retirement Agency’ as well as other providers.

Teachers’ Pensions don’t provide advice services and these seminars are not being delivered by Teachers’ Pensions, nor do we appoint companies to deliver the seminars on our behalf. The only member presentations we support are through the Prudential. If you'd like to contact them to enquire about member presentations you can do so by telephone on 0800 0154614.

If you receive any queries from members, please advise them that these are not Teachers’ Pensions events and that we do not charge for any seminars that we deliver.