Teachers pension, phased retirement and lump sum

tv_dinner67

I'm at the early stages of trying to get my head around the phased retirement options open to me at 58 years old. Am I right in thinking that if I take 20% of my benefits early, essentially I will be drawing an amount roughly equivalent to 20% of my pension as outlined in my pension statement? Also, can I access the lump sum and would I be limited to 20% of that sum or can I take the whole amount early? Any help gratefully received.

Marcon

This might be helpful viewing if you've not already seen it: https://www.youtube.com/watch?v=pk7Wuynelqs

Brie

What's the value you're thinking of taking?  Will it put you into a higher tax bracket?  

Marcon

Brie said:

What type of pensions?  Personal?  Work?  If work schemes are the defined benefit or defined contribution?

What's the value you're thinking of taking?  Will it put you into a higher tax bracket?  

OP is asking about TPS (see thread title).

squashtraveller

tv_dinner67 said:

I'm at the early stages of trying to get my head around the phased retirement options open to me at 58 years old. Am I right in thinking that if I take 20% of my benefits early, essentially I will be drawing an amount roughly equivalent to 20% of my pension as outlined in my pension statement? Also, can I access the lump sum and would I be limited to 20% of that sum or can I take the whole amount early? Any help gratefully received.

I have recently done something similar. My understanding is as follows. You can take a proportion of your pension (not sure of the minimum) but you need to make sure you that you reduce your hours sufficiently (e.g. go from 5 days to at least 4 days - but could be less). You are allowed to take up to 75%. You should also consider whether you will be taking from the 'final salary' pension or CARE (assuming this is applicable). Once you decide on the % (20%) I think you must also take the same amount from the lump sum (ie 20%). I dont think you can take the whole amount. If both final salary and CARE apply, you will be asked to choose the relevant option (bear in mind the recent changes with McCleod judgement). Once you decide on the option I dont think it is easy to change so be aware. The paperwork (forms) can be found on the TPS website and are fairly straightforward to complete. My employer did their part and sent to TPS. It all happended very smoorthly for me and the final results were very similar to my own calculations. I went down from 5 days to 3 which was great and highly recommended. Hope it works out for you. 

stuart746

One thing to add to the above is that you can take up to 75% from each scheme (Final salary and career average); the percentages you take do not have to match.

Rustin

I would suggest joining the Teacher Pensions - Teacher to Teacher (UK) on FB. Dave Fountain led and invaluable when it comes to TPS related issues.

They'll sort you out in no time.