Teachers ...retire early or take phased retirement?

stedwell

Hi,
I have been lucky enough to secure myself a part time role next September. I will be 57 years old and want to take my pension early to top up my earnings. I know I will lose about 12% of my pension by going early but would like to know whether other teachers in this situation took their full pension and started a new contract or took phased retirement instead. Thanks

Marcon

stedwell said:

Hi,
I have been lucky enough to secure myself a part time role next September. I will be 57 years old and want to take my pension early to top up my earnings. I know I will lose about 12% of my pension by going early but would like to know whether other teachers in this situation took their full pension and started a new contract or took phased retirement instead. Thanks

Not sure how that would help you? Surely so much depends on individual circumstances?

hyubh

Marcon said:

stedwell said:

Hi,
I have been lucky enough to secure myself a part time role next September. I will be 57 years old and want to take my pension early to top up my earnings. I know I will lose about 12% of my pension by going early but would like to know whether other teachers in this situation took their full pension and started a new contract or took phased retirement instead. Thanks

Not sure how that would help you? Surely so much depends on individual circumstances?

'Phased retirement' i.e. the TPS/STPS implementation of flexible retirement in the technical sense of drawing an occupational pension while remaining in the employment where that pension arose. So the OP is asking for pros and cons of a formal flexible retirement vs. coming to something notionally similar, but not via flexible retirement mechanisms.

stedwell - this board did have one regular who was (is) a Teachers pensions expert, though she's only an intermittent poster now. Hopefully someone who does know the domain will come along, though as a layperson looking at both the TPS and STPS websites, it seems taking an ordinary early retirement would require your new employer's consent for it to be done immediately on starting the part time job...?

TPS website version:

If you’re currently in pensionable service then your employer has to agree that you can leave and take your benefits. If they don’t agree initially, they cannot withhold their consent for more than six months. Your benefits will be paid the day after you cease pensionable employment.

https://www.teacherspensions.co.uk/members/planning-retirement/types-of-retirement/early-retirement.aspx

STPS website version:

If you’re in pensionable employment when you apply for actuarially reduced benefits you must obtain the consent of your employer to gain immediate access to retirement benefits. Employers cannot withhold their consent for longer than six months from the date on which you submit your request. Subject to your employer's consent, actuarially reduced pension benefits are paid from the day after your last day of pensionable service.

https://pensions.gov.scot/teachers/retirement/planning-retirement/types-retirement

In contrast, the need for employer consent appears somewhat less for a phased retirement, given you already have a part time role lined up that presumably allows you to meet the requirement for your pensionable earnings being at least 25% less than before. (This seems rather backward from my LGPS-centric POV, but both the TPS and STPS websites imply that, so hey...)

zagubov

Nobody here's an expert in this, I took the first path as I wanted to be flexible in reducing my hours whereas phased retirement has a limited number of phases and moves irreversibly downward.

Retired at 59.

Restarted a new post 24 hours after retirement. Already received lump sum and started to receive pension (actuarially reduced by about 4%). Bosses didn't want me part-time at first but started to reduce my days after a few years.Paperwork's minimal and the fraction worked can vary up or down.

stedwell

Hyubh - Thanks for taking the time to add the links. Much appreciated.
Zagubov - I am also leaning towards the first path. Phased retirement seems too restrictive and I don't think I will benefit very much by continuing to pay into my pension on a reduced wage for the last 2 and a half years. Thanks

jem16

hyubh said:

Marcon said:

stedwell said:

Hi,
I have been lucky enough to secure myself a part time role next September. I will be 57 years old and want to take my pension early to top up my earnings. I know I will lose about 12% of my pension by going early but would like to know whether other teachers in this situation took their full pension and started a new contract or took phased retirement instead. Thanks

Not sure how that would help you? Surely so much depends on individual circumstances?

stedwell - this board did have one regular who was (is) a Teachers pensions expert, though she's only an intermittent poster now. Hopefully someone who does know the domain will come along, though as a layperson looking at both the TPS and STPS websites, it seems taking an ordinary early retirement would require your new employer's consent for it to be done immediately on starting the part time job...?

Was is probably the correct description for me now as being 6 years away and the introduction of the CARE scheme, means that so much has changed with the TPS that I don’t feel able to contribute as I did years ago. 

From memory I would agree with zagubov in that there are too many restrictions with the phased retirement.