Teacher's pension - Online Illustration versus Statement of Benefit

unhinged

Hi , I'm thinking of taking early retirement from teaching. My Benefit Statement gives me Annual pension and Lump sum figures much higher than the online illustration calculator on the TP web site .
Example - Automatic Lump sum on calculator £46k . On Statement of benefits £60k.
This concerns me.  Now, I understand that the pension estimate on the calculator shouldn't be relied upon to inform final decisions (and to use the Benefit Statement)  but I'd dearly love to know why the sums described in the two differ so widely.
Have any other teacher's had experience of this? TP on the telephone will not tell me why this is happening. Prospective Financial adviser has said he hasn't had any other teacher's raising this issue. It has become a niggling worry. Any advice greatly appreciated .

I am inputting the correct information into the calculator. Is there something it's not taking into account?
Many thanks.

BoGoF

Does the statement of benefits assume payment at NPA which is actuarilly reduced in the online illustration?

xylophone

Just a thought, are you sure that you are comparing like with like?

The maximum PCLS available might not be the same as the automatic PCLS?

https://www.teacherspensions.co.uk/-/media/documents/member/factsheets/applying-for-retirement/things-to-consider-before-you-retire.ashx?rev=8c7b8546cbe943ada86155854c361d47&hash=AD003C83BBA96D90B822D38F53292965#:~:text=The maximum amount of lump,you cannot change the amount.

hugheskevi

If you have final salary benefits, what is the salary used to calculate benefits in the online illustrator? What is the salary used to calculate your Statement of Benefits? 

If one is just your latest pensionable earnings whilst the other is an inflation-adjusted figure from several years ago and you have had below-inflation pay increases, the difference can be large.

eastcorkram

With the TPS, how do you obtain a benefit statement? 

xylophone

With the TPS, how do you obtain a benefit statement? 

https://www.teacherspensions.co.uk/members/faqs/your-benefit-statement/navigation.aspx#:~:text=You can view your Benefit,do so by clicking here.

https://www.teacherspensions.co.uk/members/faqs/your-benefit-statement/navigation.aspx

eastcorkram

xylophone said:

With the TPS, how do you obtain a benefit statement? 

https://www.teacherspensions.co.uk/members/faqs/your-benefit-statement/navigation.aspx#:~:text=You can view your Benefit,do so by clicking here.

https://www.teacherspensions.co.uk/members/faqs/your-benefit-statement/navigation.aspx

I'll have to check with my OH. I'm not sure I understand the difference between that , and the online illustration thing I think she uses. 
 
I do know she thinks it's not a very good or easy to use tool though. I can't really comment, as I've not even seen it. Just heard her complaining about it !

unhinged

BoGoF said:

Does the statement of benefits assume payment at NPA which is actuarilly reduced in the online illustration?

I'm treating both the illustration and statement of benefits as if I Will retire at 60..so not having to factor actuarial reduction. Just to keep.it straightforward.

unhinged

xylophone said:

Just a thought, are you sure that you are comparing like with like?

The maximum PCLS available might not be the same as the automatic PCLS?

https://www.teacherspensions.co.uk/-/media/documents/member/factsheets/applying-for-retirement/things-to-consider-before-you-retire.ashx?rev=8c7b8546cbe943ada86155854c361d47&hash=AD003C83BBA96D90B822D38F53292965#:~:text=The maximum amount of lump,you cannot change the amount.

Hi I'm comparing the automatic lump sump and annual pension amounts stated in illustration and statement of benefits. The optional lump sum is lower too in the illustration compared to statement of benefits. 

unhinged

hugheskevi said:

If you have final salary benefits, what is the salary used to calculate benefits in the online illustrator? What is the salary used to calculate your Statement of Benefits? 

If one is just your latest pensionable earnings whilst the other is an inflation-adjusted figure from several years ago and you have had below-inflation pay increases, the difference can be large.

Might that be it. ? On the illustrator I'm putting in my current salary as requested but I'm sure I've read somewhere about 'best average salary '?
Many thanks