Teachers - did you get your predicted pension

[BG2015]

I'm beginning to really think about retiring now after having breast cancer last year. I'm 54 and am now paying more towards my mortgage so I can retire at 56/57.

I regularly check my forecasted pension and lump sum on TPS but wonder how accurate it really is.

Can anyone say whether the (rubbish) calculators on there are any good.

I'm in the Final salary scheme and career average schemes so that complicates things further, plus theres the McCloud judgement to consider to. It's a minefield.

No you can’t undo it now @downwiththatsortof but the LGPS is all one scheme (just administered by different councils) so assuming you didn’t have a break in service when moving funds your benefits will have transferred in the same format with the same retirement age.

• thanks for the reply. I did have a break in the service as I went on maternity leave and didn't work for about 3 years. So, I'm not sure if i've disadvantaged myself!🤔

@ChessieFL

For teachers, I’m in Scotland but the English scheme is very similar in most ways. We have a calculator that calculates the two scenarios of remaining in the old final salary scheme v changing to CARE in 2015 and I think has options for part time years as well.
McCloud modeller

The above calculator is in the public domain so any teacher can use it.

@downwiththatsortof you should still be fine, it’s breaks of more than 5 years that affect transfers and that’s only where it’s after 2014 so if yours was in 2012 it’s fine.

having same predicament about pension/lump sum.
haven’t seen the Diddy Dave - Golden Goose video yet, but the lump sum is tax free while the annual payment is subject to normal taxation.
So any annual payment over £12.500 will be taxed @20% bringing it down. Is that correct? Investing your lump sum might give some further rewards I should think.
check the 1/12 lost agains 20/100 etc very complicated with my slow maths brain.

The general consensus is that the lump sum is poor value. The Weslyan advisor suggested you could get 4-5% interest a year if invested but that's not guaranteed and it could be 1% or 10%.

I decided that I didn't want that worry.

The lump sum is exact as that’s been frozen for quite a few years now. The actual pension is an accurate forecast but early retirement complicates things a bit. I know you can actually take your pension at 55 if you want, that’s what my DH is going to do. Perhaps talk to a financial adviser like Prudential or Wesleyan who specialise in teachers’ pensions.

Just to let you know that I've just had my pension award. I'm 55 with 30 years service, was Deputy Head for the last 2 years and before that, UPS 3 with TLR. I've opted (rightly or wrongly) for the bigger lump sum as my husband has a good monthly police pension and we want to pay our mortgage off. I'm getting £79000 lump sum and £11500 annual pension.
I plan to do some work to top my pension up, not decided what or when yet. Hope this helps.

That's really positive for early retirement! Enjoy 🍷

That’s great Foxy. Just waiting for my award …

Hi I am a teacher and would like to retire in a years time in order to access my final salary pension. After this I intend to work part time. I am unsure whether to take phased retirement, retire before I am 60 to avoid abatement (this though means I have to take career average pension as well which I would have preferred to have left to avoid penalties) or to retire at 60 and risk abatement. Does anyone have any advice?

I have taken my final salary element. I activated it in May and will do the next academic year but will avoid abatement due to timing and the fact I was an AHT and stepped down to HoD. I have no interest being a part time teacher.

check out Diddy Dave’s fab videos on YouTube

So the two pensions are separate aren't they, taking the final salary shouldn't mean having to take the career average (unless you stop working). I think?

check out Diddy Dave’s fab videos on YouTube

Any more clues on this @Countdown2023 ?
My putting 'Diddy Dave' into You Tube's search box just gives me a load of rappers

his name is David Fountain so that might help your search!

I'm sure if you retire early you have to take them both at the same time, you can't take one and not the other.

But if I took my final salary pension at 60, that's not early for it. It matures at 60. And the other one doesn't mature until 68 (if that's the right word!)

Laughing at Diddy Dave being a rapper! Yes David Fountain is a fabulous source of info on TPS.

I am currently in receipt of the final salary element and accruing the career average part. I took a one day break as advised.

Thanks @BatsPigeonsRatsSquirrels

If you take your final salary before 60 unfortunately you also have to take the career average. Once 60 you can take them separately but then are subject to abatement.

Has anyone gone down the phased retirement route or had any problems with abatement. I agree Dave is amazing I watched his videos and then emailed him and he has given me some fantastic advice.

abatement will depend upon your part time allocation eg 2/3 days and length of service.

Dave does stress he is not a financial advisor but he has some great spreadsheet that he shares so you can understand your options.

good luck in your decision making @UsingChangeofName

Could you explain this a little more, if you've time? What is abatement?
(I would hope to "retire" at 60, but probably need to still work 2 days a week or something either as part of current contract or on supply)

If you retire at 59 years 11 months you won't be subject to abatement. If you retire at 60 years you will.

Honestly look at Dave Fountains videos - it explains it all.