I was wondering if there is any indication of what general amount I'd expect to receive from my pension as a teacher if I did retire at 60, 65 or 67 (note: my actual contract states 70 is my retirement age !! I can barely imagine being able to teach in my mid/late 60s let alone at 70).
Do the above if you can. Based on current rules, monthly ARF drawdowns in the year you turn 63 should qualify you for the 65's payment.I would strongly suggest that you consider investing in AVCs between now and your retirement if you have any spare financial capacity. Some of the accumulated fund could be used to augment the tax free lump sum and the rest invested in an ARF and drawn down flexibly.
Thanks so much for thatIt looks like you are in the Single Pension Scheme. You can work until age 70 at the maximum but your "normal retirement age" is whatever the State Pension Age is at the time. Currently it is 66 but it may well rise to 67.
It is very difficult to project your pension benefits in the Single Scheme as it is based on career average earnings. I note you don't give any indication of your current pensionable salary. Also, just to note that you can retire and take a pension from 55 but the amount of pension will be actuarially reduced on a progressive scale to reflect this early retirement (CNER).
Anyway, just to give an indication, lets assume that your career average earnings (in today's terms) are about €55,000 pa. and that the State Pension age remains at 66. If you have 16 years service at 60 then your accrued pension benefits would amout to in the region of €5,600 pa - you could preserve this and draw it down from State Pension age. However, if you want to draw it down immediately at 60 (Cost Neutral Early Retirement) it would be reduced to about €4,500 pa. Your tax free lump sum would also be reduced slightly to about €32,000.
At 65 you would have 21 years service. Again we will assume career average earnings of €55K and the State Pension age remains at 66. Your accrued annual pension of €7500 would be reduced to €7,200 under CNER. The lump sum would approximate to €43K.
In the event that the State Pension Age rises from 66 in the meantime, those figures for CNER would be a little lower.
The above figures include lots of assumptions and are approximate in any event. But they may give you some indication. Also, whatever you get under the State pension is seperate and additional. I note that you expect that you will qualify for a full State Pension.
I would strongly suggest that you consider investing in AVCs between now and your retirement if you have any spare financial capacity. Some of the accumulated fund could be used to augment the tax free lump sum and the rest invested in an ARF and drawn down flexibly. If you take CNER this might help in the gap years before the State Pension becomes payable.
Thanks so much for that brilliant insight - that makes it so much clearer to me and is a great help. It looks so low and is such a massive reduction so I'm really glad you've highlighted that. I think you're right and I'll start to look into AVCs. Really really appreciate it (this is the first time I've gotten any approximate figures so it makes it more real to me and definitely makes me focus now on what I need to do). Thank you very very much.It looks like you are in the Single Pension Scheme. You can work until age 70 at the maximum but your "normal retirement age" is whatever the State Pension Age is at the time. Currently it is 66 but it may well rise to 67.
It is very difficult to project your pension benefits in the Single Scheme as it is based on career average earnings. I note you don't give any indication of your current pensionable salary. Also, just to note that you can retire and take a pension from 55 but the amount of pension will be actuarially reduced on a progressive scale to reflect this early retirement (CNER).
Anyway, just to give an indication, lets assume that your career average earnings (in today's terms) are about €55,000 pa. and that the State Pension age remains at 66. If you have 16 years service at 60 then your accrued pension benefits would amout to in the region of €5,600 pa - you could preserve this and draw it down from State Pension age. However, if you want to draw it down immediately at 60 (Cost Neutral Early Retirement) it would be reduced to about €4,500 pa. Your tax free lump sum would also be reduced slightly to about €32,000.
At 65 you would have 21 years service. Again we will assume career average earnings of €55K and the State Pension age remains at 66. Your accrued annual pension of €7500 would be reduced to €7,200 under CNER. The lump sum would approximate to €43K.
In the event that the State Pension Age rises from 66 in the meantime, those figures for CNER would be a little lower.
The above figures include lots of assumptions and are approximate in any event. But they may give you some indication. Also, whatever you get under the State pension is seperate and additional. I note that you expect that you will qualify for a full State Pension.
I would strongly suggest that you consider investing in AVCs between now and your retirement if you have any spare financial capacity. Some of the accumulated fund could be used to augment the tax free lump sum and the rest invested in an ARF and drawn down flexibly. If you take CNER this might help in the gap years before the State Pension becomes payable.
Thanks Michaelm - will have a look at that and this is really good to know. Much appreciated.Do the above if you can. Based on current rules, monthly ARF drawdowns in the year you turn 63 should qualify you for the 65's payment.
It looks so low and is such a massive reduction so I'm really glad you've highlighted that.
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