sense check: partial retirement

Albermarle

Apart from the financial aspects I would highly recommend flexible retirement rather than cliff-edge. 

Unfortunately in many jobs it is not really possible to go 'part time' . For example many managerial jobs have specific responsibilities as opposed to fixed weekly work hours .

It can just mean that you get reduced pay, but still have to answer your phone /deal with e mails etc on the days you are supposedly not working.

I guess the Covid move to working from home , will help office based retirees to not fall off the cliff edge too steeply.

Wentthedaywell?

GunJack said:

Wentthedaywell? said:

I don’t know the CS pension, I’m in the LGPS but probably there are similarities. I took flexible retirement at 60 and work half a week. In my case I’m actually taking home more than if were working full time.

Normally, in CS, your gross for pension+continued working cannot exceed your gross salary at the point of partial retirement, so your takehome increase should be due to no NI or pension contributions on the pension income. I've got older mates who have had to work less hours than they intended on partial retirement to keep within the gross limit. 

It may be the same in local government GunJack, I don't know. In my case though, my pension is calculated on a higher grade I held some 9 years ago, not that at the point of (flexi) retirement.

There are just so many things to take into consideration, that's why threads like this are so helpful.

zagubov

GunJack said:

Wentthedaywell? said:

I don’t know the CS pension, I’m in the LGPS but probably there are similarities. I took flexible retirement at 60 and work half a week. In my case I’m actually taking home more than if were working full time.

Normally, in CS, your gross for pension+continued working cannot exceed your gross salary at the point of partial retirement, so your takehome increase should be due to no NI or pension contributions on the pension income. I've got older mates who have had to work less hours than they intended on partial retirement to keep within the gross limit. 

In some professions, there's a little-publicised rule that you need to retire and draw your pension for at least a day before returning to work (e.g. teaching and NHS). This may get round the cap on earnings.

It's up to you to ask via your pension agency, union or HR (it's not really their job to suggest this to you- nor ours for that matter as we're not financial advisors).

GunJack

zagubov said:

GunJack said:

Wentthedaywell? said:

I don’t know the CS pension, I’m in the LGPS but probably there are similarities. I took flexible retirement at 60 and work half a week. In my case I’m actually taking home more than if were working full time.

Normally, in CS, your gross for pension+continued working cannot exceed your gross salary at the point of partial retirement, so your takehome increase should be due to no NI or pension contributions on the pension income. I've got older mates who have had to work less hours than they intended on partial retirement to keep within the gross limit. 

In some professions, there's a little-publicised rule that you need to retire and draw your pension for at least a day before returning to work (e.g. teaching and NHS). This may get round the cap on earnings.

It's up to you to ask via your pension agency, union or HR (it's not really their job to suggest this to you- nor ours for that matter as we're not financial advisors).

this exactly...never take it for granted, get it nailed down in writing direct from the relevant source

Nebulous2

Albermarle said:

Apart from the financial aspects I would highly recommend flexible retirement rather than cliff-edge. 

Unfortunately in many jobs it is not really possible to go 'part time' . For example many managerial jobs have specific responsibilities as opposed to fixed weekly work hours .

It can just mean that you get reduced pay, but still have to answer your phone /deal with e mails etc on the days you are supposedly not working.

I guess the Covid move to working from home , will help office based retirees to not fall off the cliff edge too steeply.

Despite not being managerial - that was one of the reasons I left completely and took a job with the NHS. I’m earning about 60% of the hourly rate I had before, with less holiday entitlement. My employer made it very clear that part-time was on the table. 

However people who did it, and went to 3 days for instance, appeared to work for bits of 5 rather than 3 full days. It was, “I know you’re generally off on Monday, but this meeting is really important and you know what is going on, could you possibly make it?” 

DairyQueen

Nebulous2 said:

Albermarle said:

Apart from the financial aspects I would highly recommend flexible retirement rather than cliff-edge. 

Unfortunately in many jobs it is not really possible to go 'part time' . For example many managerial jobs have specific responsibilities as opposed to fixed weekly work hours .

It can just mean that you get reduced pay, but still have to answer your phone /deal with e mails etc on the days you are supposedly not working.

I guess the Covid move to working from home , will help office based retirees to not fall off the cliff edge too steeply.

Despite not being managerial - that was one of the reasons I left completely and took a job with the NHS. I’m earning about 60% of the hourly rate I had before, with less holiday entitlement. My employer made it very clear that part-time was on the table. 

However people who did it, and went to 3 days for instance, appeared to work for bits of 5 rather than 3 full days. It was, “I know you’re generally off on Monday, but this meeting is really important and you know what is going on, could you possibly make it?” 

Same thing happened to me when I tried to work part-time in.managerial role a decade+ ago.

Mr DQ will retire at the end of this year but his current 4-day week is often extended to 4+ days. Fridays are rarely a full day-off.

Days off are often working days for colleagues and clients, and your absence can be a hindrance. Sometimes they simply forget and think you are working from home so interruptions are frequent. Those working full-time can't arrange conferences and meetings around your part-time hours so there goes another non-working day.

I found the whole arrangement too difficult. So did my employer. I returned to full-time until I gave-up permanently. Life was a lot less complicated.

drummersdale

Nebulous2 said:

Albermarle said:

Apart from the financial aspects I would highly recommend flexible retirement rather than cliff-edge. 

Unfortunately in many jobs it is not really possible to go 'part time' . For example many managerial jobs have specific responsibilities as opposed to fixed weekly work hours .

It can just mean that you get reduced pay, but still have to answer your phone /deal with e mails etc on the days you are supposedly not working.

I guess the Covid move to working from home , will help office based retirees to not fall off the cliff edge too steeply.

Despite not being managerial - that was one of the reasons I left completely and took a job with the NHS. I’m earning about 60% of the hourly rate I had before, with less holiday entitlement. My employer made it very clear that part-time was on the table. 

However people who did it, and went to 3 days for instance, appeared to work for bits of 5 rather than 3 full days. It was, “I know you’re generally off on Monday, but this meeting is really important and you know what is going on, could you possibly make it?” 

Presumably the answer should be yes of course I’ll make the Monday meeting - I’ll either have a different day off or you can pay me double time?

SMcGill

I’m only a few weeks into reduced hours - now 3 days a week - and going okay so far but what definitely helps is that on my non-working days a member of my team is paid to cover my responsibilities (apart from HR). The arrangement gives them experience of senior management and for the business the additional cost is offset by my reduced hours. Thought I’d mention it as I haven’t seen it mentioned so far and could be something to consider.

Ian_Brown_3

I’m also doing 3 day weeks now. Although working from home, my wife tells me that I’m a far nicer person when I am not working! Working part time seems to me to be a good stepping stone to retiring, although I think if you enjoy the extra time off as much as I do, it really focuses your mind on quitting completely. 

Nebulous2

drummersdale said:

Nebulous2 said:

Albermarle said:

Apart from the financial aspects I would highly recommend flexible retirement rather than cliff-edge. 

Unfortunately in many jobs it is not really possible to go 'part time' . For example many managerial jobs have specific responsibilities as opposed to fixed weekly work hours .

It can just mean that you get reduced pay, but still have to answer your phone /deal with e mails etc on the days you are supposedly not working.

I guess the Covid move to working from home , will help office based retirees to not fall off the cliff edge too steeply.

Despite not being managerial - that was one of the reasons I left completely and took a job with the NHS. I’m earning about 60% of the hourly rate I had before, with less holiday entitlement. My employer made it very clear that part-time was on the table. 

However people who did it, and went to 3 days for instance, appeared to work for bits of 5 rather than 3 full days. It was, “I know you’re generally off on Monday, but this meeting is really important and you know what is going on, could you possibly make it?” 

Presumably the answer should be yes of course I’ll make the Monday meeting - I’ll either have a different day off or you can pay me double time?

In theory yes - in practice in much of the care sector the job is about what it takes. Overtime doesn't exist except for direct care staff.  Full-time managers in care services will often have a presence seven days a week. While some of the posts are reasonably well paid there is an emotional plea to help the cause, which is difficult to refuse.