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Have just gone down to a 4 day week due to family commitments how will this affect my Pension?

(10 Posts)
Amberz Wed 20-Mar-13 06:40:24

Hi I have just gone down to a 4 day working week , as my 85 year old Mum needs alot more care and it has helped to do this . Intially it can be for a 6 month trial period to see how things go with Mum, but I do not want to go back to working the 5 days due to my circumstances, does anyone know how this will affect my Pension I am divorced and worked for the last 20 years Full-time, thanks.

Gingerodgers Wed 20-Mar-13 06:55:03

I think it depends on the pension. I had NHs, which is final salary based. I gave up work after a years mat leave, my pension forecast is beyond rubbish. Look into it before making any decisions.

Amberz Wed 20-Mar-13 06:56:40

Thanks Ginger will do appreciate it

AmandaPayneNeedsaHoliday Wed 20-Mar-13 13:29:38

What sort of pension do you have - final salary or defined contribution?

Amberz Wed 20-Mar-13 16:47:45

Final Salary - Amanda

AnnoyingOrange Wed 20-Mar-13 16:55:32

You need to find out from the pension company. Some average out the last five years earnings

AmandaPayneNeedsaHoliday Wed 20-Mar-13 18:34:43

Then agree with Orange. You need to speak to your pension company and find out how the 'final salary' is calculated.

If it was defined contribution it's fairly easy, you'd still get 6% of salary paid in (or whatever it is), but the salary would obviously be smaller.

Gales Wed 20-Mar-13 18:46:16

Assuming your company is the same as mine, it means that every year you work 4/5 days counts as 4/5 of a year's service and your final pension will be calculated using your full time equivalent salary.

So, your existing 20 years are in the bank. If you work another 5 years at 4 days per week, that will amount to 4 years' service for pension purposes and your pension would be whatever % of your fte salary 24 years' service gives you.

ApuskiMcClusky Wed 20-Mar-13 19:12:46

My final salary scheme works exactly like Gales has described.

Amberz Fri 22-Mar-13 17:52:45

Gales Big thanks for the advice will be phoning my company to get a forecast before my temporary period is over for working the 4 days .

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