I am retiring in October (3 Months notice) and I was approached to see if I would be interested in working one day a week in retirement. I am in IT and would have implemented a lot of the systems over the years from business processes. I would be agreeable to at least consider this as it keeps a connection with the job, should give me a lot of flexibility. I am however post 95 and I will have to sign for JB for the first 9 months. I also got a promotion in 2017 which means under the abatement of pension rules, I would be entitled to having the pension abated for this work.
When I look at this there are a lot of deductions as a PS retiree which mean that there will only be limited financial benefit in doing this. Personally it would give me a period of adjustment to retirement, and if I do it it wont really be for the money.
The following is my thinking.
Jobseekers benefit.
I would lose 20% of the payment as I would be working one day per week, This would also extend the 9 months by potentially another couple of months.
As I am doing some work, I could probably get the payment paid in to my bank account, particularly if I set my working day as a Friday. This would give me more flexibility in my retirement. So some advantages there.
Abatement.
I would lose 20% of my gross pension, as one day a week I would be on my full former salary.
On the payment of one day a week, I would be paying pension contributions, adding 20% of a year for every year I would work under this system.
So at 65 I would be able to have a slight increase in pension, 20% of a year for every year I work.
To put some very broad figures on it.
Say JB is 250 per week, this would be reduced by 50 euro to 200.
Say final salary is 80K
Say with service my pension is 35K less JB = 22K 22K + 13K = 35K
So without working I would get a total gross pension and JB of 35K
With reduced JB and abatement this woudl reduce by 20% JB goes from 13K 10.4K a drop of 2.6K per year.
The pension reduced by 20% would go from 22K to 17.6K
Total pension and JB now 28K down 7K.
With a final salary of 80K, one days pay would be 16K. This 16K would also have PS pension charges on it.
So Pension and JB without working = 35K
80% Pension and JB + pay = 44K of which I would pay additional pension charges on 16K.
So I would make 9K gross, or 173 per day.
Looking the abatement document. The other option is a contract for service.
Over 3 years this would have a value of 48K which is approaching tender thresholds in my body. This would be more difficult to implement.
By comparison, if I was to work in the Private Sector one day per week for the same money.
Pension 22K, JB 10.5K and 16K = 48.5K vs 44K in the public sector.
The really disincentivise staff working on.
I would be interested to hear from anyone who has continued working in a reduced capacity post retirement.
When I look at this there are a lot of deductions as a PS retiree which mean that there will only be limited financial benefit in doing this. Personally it would give me a period of adjustment to retirement, and if I do it it wont really be for the money.
The following is my thinking.
Jobseekers benefit.
I would lose 20% of the payment as I would be working one day per week, This would also extend the 9 months by potentially another couple of months.
As I am doing some work, I could probably get the payment paid in to my bank account, particularly if I set my working day as a Friday. This would give me more flexibility in my retirement. So some advantages there.
Abatement.
I would lose 20% of my gross pension, as one day a week I would be on my full former salary.
On the payment of one day a week, I would be paying pension contributions, adding 20% of a year for every year I would work under this system.
So at 65 I would be able to have a slight increase in pension, 20% of a year for every year I work.
To put some very broad figures on it.
Say JB is 250 per week, this would be reduced by 50 euro to 200.
Say final salary is 80K
Say with service my pension is 35K less JB = 22K 22K + 13K = 35K
So without working I would get a total gross pension and JB of 35K
With reduced JB and abatement this woudl reduce by 20% JB goes from 13K 10.4K a drop of 2.6K per year.
The pension reduced by 20% would go from 22K to 17.6K
Total pension and JB now 28K down 7K.
With a final salary of 80K, one days pay would be 16K. This 16K would also have PS pension charges on it.
So Pension and JB without working = 35K
80% Pension and JB + pay = 44K of which I would pay additional pension charges on 16K.
So I would make 9K gross, or 173 per day.
Looking the abatement document. The other option is a contract for service.
Over 3 years this would have a value of 48K which is approaching tender thresholds in my body. This would be more difficult to implement.
By comparison, if I was to work in the Private Sector one day per week for the same money.
Pension 22K, JB 10.5K and 16K = 48.5K vs 44K in the public sector.
The really disincentivise staff working on.
I would be interested to hear from anyone who has continued working in a reduced capacity post retirement.