Very grateful to have made it! Now to the future!

[Deleted User]

I rarely visit or comment in this area of the MSE forum but just wanted to post the following.

Earlier this week I officially became a state pensioner and received the biggest annual pay rise I have ever had lol!

I fully retired last year after 40 plus years of full time and part-working in Education. I used the phased retirement approach from age 55.

By working part-time after taking my pension, as well as topping up a couple of NI years voluntarily, I have been able to achieve the new state pension. (minus just 83 pence a week) I am extremely happy with this outcome, considering I was contracted out for so many years. I paid a total of 47 National Insurance Years.

If you are presently debating whether or not to ‘top up’ I say, go ahead! It is one of the best and most cost-effective investments you can make.

I also want to say to those of you with a defined benefit pension NEVER underestimate its worth and the security it will give to your retired self.

For example, to be able to receive the Teacher’s Pension I have today, I would have needed to have built up a very substantial DC pot over my working years. Furthermore, I have not had to endure the worry of low investment returns, market fluctuations and other uncertainties.

I am aware that DC schemes are more flexible and have other advantages. However, I am happy with my DB pension lol!

When I embarked on my career in Education, I simply wanted to be a good teacher. At age 23 I had not given any sort of pension provision a glancing thought! However, I am now incredibly grateful to now have a total pension income (TP plus State and a tiny annuity!) which, after tax, gives me a monthly amount not vastly different to when I was working full time. It also has the advantage of being fully index linked.
I worked hard and was committed to my career, often in challenging schools, but now I intend to relax and enjoy!

Finally do not regret the passing years. To grow old is a privilege denied to too many.

Best wishes.

katejo

[Deleted User] said:

I rarely visit or comment in this area of the MSE forum but just wanted to post the following.

Earlier this week I officially became a state pensioner and received the biggest annual pay rise I have ever had lol!

I fully retired last year after 40 plus years of full time and part-working in Education. I used the phased retirement approach from age 55.

By working part-time after taking my pension, as well as topping up a couple of NI years voluntarily, I have been able to achieve the new state pension. (minus just 83 pence a week) I am extremely happy with this outcome, considering I was contracted out for so many years. I paid a total of 47 National Insurance Years.

If you are presently debating whether or not to ‘top up’ I say, go ahead! It is one of the best and most cost-effective investments you can make.

I also want to say to those of you with a defined benefit pension NEVER underestimate its worth and the security it will give to your retired self.

For example, to be able to receive the Teacher’s Pension I have today, I would have needed to have built up a very substantial DC pot over my working years. Furthermore, I have not had to endure the worry of low investment returns, market fluctuations and other uncertainties.

I am aware that DC schemes are more flexible and have other advantages. However, I am happy with my DB pension lol!

When I embarked on my career in Education, I simply wanted to be a good teacher. At age 23 I had not given any sort of pension provision a glancing thought! However, I am now incredibly grateful to now have a total pension income (TP plus State and a tiny annuity!) which, after tax, gives me a monthly amount not vastly different to when I was working full time. It also has the advantage of being fully index linked.
I worked hard and was committed to my career, often in challenging schools, but now I intend to relax and enjoy!

Finally do not regret the passing years. To grow old is a privilege denied to too many.

Best wishes.

I am also very glad that I have a DB pension to claim (SAUL university one). My Dad convinced me to start paying into it in 1990 and I added AVC's about 4 years later. Just deciding when to actually stop and claim it. 

pinnks

I agree 100% and am in a similar position, albeit DB pension for the last 5 years, soon-to-be UK state pension, also just short of the max having paid 5 years voluntarily, and state pension from one of our kind EU neighbours. 

When the UK state pension finally kicks in, post tax, and absent my hideously expensive commute that ate up about £9k from net income 5 years ago, my net cashflow will be plus/minus what was while working. 

But far from being "economically inactive" as certain politicians would have us believe, I seem to be single-handedly supporting the UK and other economies through always spending my ill-gotten gains, lol!

Sometimes, the decisions you never made turn out to be the best ones...  

pterri

[Deleted User] said:

I rarely visit or comment in this area of the MSE forum but just wanted to post the following.

Earlier this week I officially became a state pensioner and received the biggest annual pay rise I have ever had lol!

I fully retired last year after 40 plus years of full time and part-working in Education. I used the phased retirement approach from age 55.

By working part-time after taking my pension, as well as topping up a couple of NI years voluntarily, I have been able to achieve the new state pension. (minus just 83 pence a week) I am extremely happy with this outcome, considering I was contracted out for so many years. I paid a total of 47 National Insurance Years.

If you are presently debating whether or not to ‘top up’ I say, go ahead! It is one of the best and most cost-effective investments you can make.

I also want to say to those of you with a defined benefit pension NEVER underestimate its worth and the security it will give to your retired self.

For example, to be able to receive the Teacher’s Pension I have today, I would have needed to have built up a very substantial DC pot over my working years. Furthermore, I have not had to endure the worry of low investment returns, market fluctuations and other uncertainties.

I am aware that DC schemes are more flexible and have other advantages. However, I am happy with my DB pension lol!

When I embarked on my career in Education, I simply wanted to be a good teacher. At age 23 I had not given any sort of pension provision a glancing thought! However, I am now incredibly grateful to now have a total pension income (TP plus State and a tiny annuity!) which, after tax, gives me a monthly amount not vastly different to when I was working full time. It also has the advantage of being fully index linked.
I worked hard and was committed to my career, often in challenging schools, but now I intend to relax and enjoy!

Finally do not regret the passing years. To grow old is a privilege denied to too many.

Best wishes.

So pleased I’ve got a DB pension, I had a private sector one and transferred it into my (quasi) public sector one, it was worth ten years so will have 31years next year at 57. It gives a fantastic base and I’ve just qualified for full state pension this year so that’s taken care off. 

[Deleted User]

I would also like to say to those you are considering opting out of a works pension scheme- DON'T!

I know when times are tough It can be very tempting to do so, especially for a short period of time.

During the late 1980s and early1990s I wont through some very challenging personal financial times. However, I kept paying into my pension. My retired self is very grateful that I did so without any gaps!

SouthCoastBoy

[Deleted User] said:

I rarely visit or comment in this area of the MSE forum but just wanted to post the following.

Earlier this week I officially became a state pensioner and received the biggest annual pay rise I have ever had lol!

I fully retired last year after 40 plus years of full time and part-working in Education. I used the phased retirement approach from age 55.

By working part-time after taking my pension, as well as topping up a couple of NI years voluntarily, I have been able to achieve the new state pension. (minus just 83 pence a week) I am extremely happy with this outcome, considering I was contracted out for so many years. I paid a total of 47 National Insurance Years.

If you are presently debating whether or not to ‘top up’ I say, go ahead! It is one of the best and most cost-effective investments you can make.

I also want to say to those of you with a defined benefit pension NEVER underestimate its worth and the security it will give to your retired self.

For example, to be able to receive the Teacher’s Pension I have today, I would have needed to have built up a very substantial DC pot over my working years. Furthermore, I have not had to endure the worry of low investment returns, market fluctuations and other uncertainties.

I am aware that DC schemes are more flexible and have other advantages. However, I am happy with my DB pension lol!

When I embarked on my career in Education, I simply wanted to be a good teacher. At age 23 I had not given any sort of pension provision a glancing thought! However, I am now incredibly grateful to now have a total pension income (TP plus State and a tiny annuity!) which, after tax, gives me a monthly amount not vastly different to when I was working full time. It also has the advantage of being fully index linked.
I worked hard and was committed to my career, often in challenging schools, but now I intend to relax and enjoy!

Finally do not regret the passing years. To grow old is a privilege denied to too many.

Best wishes.

Congratulations on reaching Spa. I agree about the public sector db pensions. I think some people who receive them don't realise how valuable they are, the return compared to the inputs are really outstanding 

Sunnylifeover50plan

This is like the great escape, another one has made it out of the tunnel! Just remember, when in Germany if someone wishes you good luck, in English, look at them quizzically and wander off muttering German expletives. Good health.

leosayer

Thanks for posting. 

The great thing about DB schemes is that you generally don't need take any action to get a good outcome. 

In my experience most workers, even those in financial services, have very little interest or knowledge about how to plan for their retirement and people only start waking up to this when they are very close to retirement.

I didn't really start paying attention until my early 40s when my employer stopped their DB scheme and shifted us all over to DC. Before that I'd never really paid any attention but I'm very glad I did because if not I would inevitably have ended up missing out on loads of opportunities and investment returns.

GibbsRule_No3.

Sush!  Don't tell people how well we are doing with DBs or THEY will come for us ;-)

The fact it wasn't our fault when we started work and our Pensions were looked after for us, without us paying much attention, other than our wages were probably less than employments that did not offer DBs, as they expected you to use the extra to buy a Pension.

Albermarle

GibbsRule_No3. said:

Sush!  Don't tell people how well we are doing with DBs or THEY will come for us ;-)

The fact it wasn't our fault when we started work and our Pensions were looked after for us, without us paying much attention, other than our wages were probably less than employments that did not offer DBs, as they expected you to use the extra to buy a Pension.

Mine was even non contributory, so I ended up with nearly 16 years of DB pension without paying a penny.
When I left for a better job, I knew I was leaving behind a big benefit and I took the risk to push the new employer for a higher salary than I would have probably done otherwise. It worked out well in the end as it was a good career move.

Inevitably the DB scheme I left became contributory, and then stopped altogether, like nearly all other private sector schemes.

GrubbyGirl_2

It's not very often that you can say ignorance is bliss when it comes to pensions but in my case it was.  I started in the NHS at age 18 in 1978 and although my pay slip said I paid superannuation I had no idea what that was and at 18 and earning for the first time I was just interested in the bottom line.  I eventually found out it was pension but had no clue that although the NHS auto enrolled you I could choose to come out.  That was the one bit of ignorance I was very grateful for.  I retired at 60 after 42 years on a final salary pension after joining at the very bottom pay scale and retiring at the top.  They give you a hypothetical annuity amount and for me it was £1.8million.  I could never have achieved that with a defined contribution pension.

Just as an aside when public sector people are wanting a nice pay rise they don't appreciate how much the government pays into their pensions (for the NHS it's just over 20%) which is arguably all part of their remuneration package.  I fear that if big pay rises are wanted the way to afford them is to reduce pension contributions which may spell the death knell of the DB pension in the public sector.  They need to be careful what they wish for.