If you later were to have a break in employment that triggered the payment of the entire remaining part of the final salary then there is a benefit to taking phased at 59+11. This part would be considered to have been taken "early" and as such would NOT be subject to any future abatement if you then returned to a teaching post. Whereas if you took phased at 60+ then once you trigger the rest it could be abated if you returned to work.
Hi David, thank you so much for your videos. Can you explain please how the hypothetical calculation works if you have a few breaks in service please... i had a break in 1998 for 2 years , then in 2003 for 3 years, then in 2022 for a year. Thank you
Each and every break creates a separate hypothetical calculation based on the rules in place at the time. These are compared and whichever produces the best pension is the one you get. Your breaks from before 2007 will use the best single period of 365 days (1 year) from the previous 3 years. The one in 2022 will use the years from 2012 to 2022.
Could I also ask one follow on question please , my method b calculation shows my best years as being 2014 to 2017 , does the break in service protect those or I am at risk of losing my best final salary years ?
Hi Dave. Is the reduction in Final Salary pension for taking phased retirement before NPA of 60 calculated monthly or yearly? I.e if someone wanted to take P retirement at the end of a term which was several months before they turned 60 what percentage would it be reduced by? Many thanks for great video!
If I dropped to 4 days a week and took 75% of just my 80ths scheme (I’ve been in the scheme since 1993), I think that means that the 0.8 salary + 75% pension comes to more than my 100% salary. Is that allowed? Seems too good to be true! I’m currently aged 57yrs 9 months.
Yes, that is correct. Though taking the pension BEFORE 60 means you would not be subject to the rules on abatement that limit how much can be paid anyway. Taking the pension "early" like this does mean it is reduced for life. Just the % you take, the part you leave until later will be based on your final salary when you finish and your age when you take it.
I don't know why you would think that. When you access the % of your pension in the phased retirement process that comes with the associated lump sum and the option to give up some of the pension for a lump sum.
Hi David, hopefully a quick question. Is it the case that the 'Deferred Choice Underpin', which I understand to mean deciding whether to remain as final salary or be calculated under the career average scheme rules for remedy period (April 2015 and 31 March 2022) has to be made at the start of phased retirement?
Ah, now, that is a very good question and I have also not seen a definitive answer in this regard. My gut feeling is that the choice would have to be made when you start taking any part of the pension, but I have no certain knowledge of that.
@@dfountain I guess I am going to find out as I am intending to start my phased retirement from April 2024. Which does prompt me to ask another question if I may. Given that we just had a pay rise in Sept 2023, would I be better hanging on until September 2024 before starting phased retirement? I am thinking that I would then have a full year of the higher salary but maybe it does not make much difference, also my statement shows my best years are for method B (years 2020-23)?
A little tricky on the best salary front but only if your Method B currently INCLUDES your salary since September 2023. There is a problem in making the comparison between the Method B and your current salary because the Method B has only been revalued up to LAST April...it is currently "owed" 8 months worth of inflation and as such is going to easily stay ahead of your current pay rise...why? Well, the Method B's increase in April 2024 is going to be 6.7% and that JUST beats the current 6.5% pay rise you've had. So, why do I say "easily" given that is only a 0.2% difference. Well, the current 6.5% pay rise is going to take ANOTHER 9 months before it has worked its way fully into the calculation, that is not until the end of August 2024. The Method B gets its 6.5% 5 months BEFORE that and then will get 5 month's worth of next year's inflation figure added it it by August 2024.
@@dfountain TPS recently told me that as I am taking phased retirement in April I will receive a communication prior to this asking me how I want my transitional period (McCloud judgment) to be treated. It will give the figures both for staying in the final salary and moving to the career average scheme for the period so that I can make a choice on what to do (ie either stay in the final salary scheme for this period or alternatively move to the career average scheme from the start of this period).
Hi Dave - I've just left this under the Hypothetical Calculation video you posted - but that was well over a year ago - so i'm not sure you are checking for any new comments /questions ?? I'd really appreciate a bit of advice - and I'm hoping this is quite a straightforward Q for you ? ( see below) This has been very informative - thanks so much for the video - but could still do with some very basic advice. I had 26 years of service up to and incl Dec 2019 - with best three years being 2009-20011. I then came out of the TPS scheme in dec 2019 (not by choice) when I moved to another school, and have been out of it ever since. I have now been given a 2 day a week contract for a year - which may/may not be extended beyond that. I envisage working another 5/6 years - but most likely part time - and certainly nowhere near the salary levels of 2009-2011 !! Put simply should rejoin I the TPS scheme ?
Yes, I did reply in the other video. Being part-time the career average pension you add is actually cheaper than if you were full time. This is because your contribution is based on your actual salary and for the lower end can be as low as 7.4% compared to the normal full time rate of around 9.6%.
Hi Dave. Thank you so much for making the teachers pension clearer! My questions are about phased retirement. When I reach 55 I plan to drop a day a week and start phased retirement. I can drawdown from my pension up to 75% to compensate for the drop in income. Please can you tell me the tax implications of doing this? If i drawdown 75% will I have to pay more tax than just 25%? Also am I correct in saying that if I did this I would receive 75% of my lump sum? Would this be actuarily reduced costing me thousands? Also, if I used phased retirement from 55 to 60, will it narrow the choice for the best three years from the last ten if i fully retire at 60? For my final salary pension, the five years of phased retirement are unlikely to be my highest wages? Thank you.
Income from any source is taxed as income tax. Your pension will be added to your salary and taxed accordingly. As your pension, or 75% of it, is likely to be similar, or less, than the amount you have reduced your salary by you should see very little change in the amount of income tax you will pay. Yes, the lump sum, well 75% of it - the bit you are taking - is also actuarially reduced, so it is smaller than it would be compared to leaving it. I factor this in when I do the calculations in this video: th-cam.com/video/IJZOzhl3FH8/w-d-xo.html With regard to your final salary, and ten years that are used, yes, if you continue without a break your remaining 25% (or however much you didn't take) will be calculated using the 10 years leading up to the next time you take the pension. See "The Pay Plateau" video that I have made that explains how to protect this: th-cam.com/video/qP5XkqTM1f8/w-d-xo.html
Hi Dave - Thank you for your very useful advice and videos. I am planning to take phased retirement next year but not sure what percentage of my lump sum to take. I am currently in the 40% tax bracket but planning to take a big drop (3 days a week and none of my current responsibilities) which will put me in the 20% basic rate bracket (salary & 75 % of final salary pension included - not touching my career average as ridiculously low). My question is, what percentage of my lump sum should I take at the point of phased retirement in order to not be taxed 40% on it and also can I take a percentage of the lump sum every year until the pot is empty and will I be taxed 20% on it? Thank you
I cannot really give you "advice" on this as I have no financial qualifications - I am not a financial adviser, just an ex-teacher. However, you have a basic misunderstanding of how the TP works. There is no "pot" of money. You don't get to take out lumps of it at a time. You take a % of the pension and lump sum and then you can "sell" some of the pension for a greater lump sum (poor value in my opinion). I am also very hesitant about basing such decisions on the current income tax rules, they can change at the drop of a hat (or Government). There are, currently, ways of managing the 40% income tax - simply putting more into a pension scheme for example to be taken out later when you finish working and your income drops to well inside the 20% bracket.
Thanks, that’s really very helpful. I have a question. Is there not another alternative to phased retirement (where one can take up to 75% of benefits for at least 20% reduction in salary, for one year, and where income must not be greater than before), which I have heard called ‘flexible retirement’ (which I think TPS simply consider as early retirement). This would involve taking all the pension and reducing salary by 20% or more (say by starting a part-time role). Have I got this wrong?
Not heard that term and certainly haven't come across anything other than the two options of; 1) Phased retirement and 2) Early retirement 1) Phased being where you need to 20% reduction in salary for 12 months (it can go back up after that point) and the reduction ignores any normal pay increases. This doesn't require a break in employment or contract - though of course the contract would change. You can choose to take part of each pension separately. For example, nothing from the career average and 75% from the final salary...or...50% from both etc. You add to the career average pension with your subsequent service but there is no minimum service requirement thereafter unlike early retirement. 2) Early retirement where you take ALL of your teaching pensions before their normal pension ages but you have to have a break in contracts so that you are not employed in a TPS eligible post on the day you start the pension. You have to take all of the pension you have built up to that point. You start a "new" career average pension in your new post and you have to do a least a full year in order for that new pension to be qualified as a pension. There is no limit or requirement to do 80%, you can earn as much as you like.
Hello David, Following your fantastic "Pay Plateau" video, I wonder... just to confirm: if a teacher Opts Out for one month before reaching 60, and takes 75% of the FS at 60 - Would the same average salary be used to calculate the remaining 25% of the FS years later? Also, will the remaining 25% FS grow with inflation? Many thanks.
No, the average salary is calculated again when you take the remaining 25% using the salaries in the previous 10 years from that point (or from previous breaks if you have any that are better - the change from full time to part-time is not considered a break unless you actually have a day or more between contracts) The revaluation continues, so yes, you get the benefit of subsequent inflation.
Correct. I had a chat with someone at the TPS who pointed out that employment that carries on after taking phased retirement is classed as "continuous" employment and not "further" employment and as such is not subject to the rule on abatement (64 in the regulations)
Hello again David, Two questions please, if I may. For someone over 60 taking phased retirement, who is both in the final salary and average salary schemes, going part-time by dropping one day (20%) and taking 75% of their pension from the final salary scheme only. 1) What happens if they decide to fully retire in less than one year (I believe phased retirement requires one year of work while at 20%)? and 2) does the average salary pension continue to increase at 1/57 of the full pay figure or the 80% of the full pay figure? Thank you!
1) They can go at any time. The 1 year limitation is that their SALARY must NOT exceed the 80% from the previous 12 months and not that they must complete 12 months at 80% or less. 2) The career average pension is always calculated on the salary you are employed to receive, so it will be based on the 80% figure.
@@dfountain Thank you, that makes perfect sense. What happens if there is a pay rise after taking the phased retirement? Does the average salary pension increase by 1/57 of the increased 80% pay figure? Also, for the final salary scheme, given the same pay rise, does the remaining 25% benefit from the higher final salary or is this fixed at whatever the final salary figure was when starting the phased retirement?
I am told, but cannot find reference to this in the regulations, that "normal" pay rises are accounted for and would not breach the 80% limit if that was the only increase. I have yet to really get to grips with what this means if someone took phased retirement mid-academic year. The career average is ALWAYS 1/57th of what you are paid...you are paid £570 the CA gets £10...you get paid £1140, the CA gets £20. FINAL SALARY The remaining 25% (or whatever you haven't taken) gets to use whatever the "final salary" is when you finish. So, it *could* be higher...but it could also be lower...and with inflation exceeding pay rises for the last 10+ years this latter possibility is quite likely! (Check out the video I have called "The Pay Plateau") th-cam.com/video/qP5XkqTM1f8/w-d-xo.html
@@dfountain Thanks, I’ll check out that video. Regarding the final salary pension 25%, in the case of a possible ‘normal’ pay rise after taking phased retirement - are we talking about the 100% or 80% final salary figure being used later when you finish to calculate the remaining 25% of the final salary pension, ie 25% pension = ((25% of total years) x (100% of final salary))/80? I am assuming it is the 100% figure, making this different to the career average, which you mention is using the 80% figure (the figure you get paid), ie pension added in a given year = 1/57 of salary paid that year, which is 80% given one day has been dropped. I hope this is making sense. Sorry about all the questions.
I think I see what you are getting at...if you want me to take a detailed look get in touch via my blog at dfountain.co.uk and I'll go through her statement to see if there's anything that needs attention. The calculation of the "final salary" always uses the 100% figure no matter what part-time rate is worked.
For the phased retirement (for someone say aged 61, ie over their NPA for the final salary scheme but below the NPA for the career average), you mentioned that you can choose to take part of each pension separately (eg nothing from the career average and 75% from the final salary...or...50% from both etc.) So, I guess one could take 75% from both. Is that right? Also, is there anything to be gained by just taking 75% pension from the final scheme and zero from career average? I am thinking that the career average will have the actuarial percentage reduction applied, so does that mean it is better left alone?
Yes, you can take UP to 75% from each scheme. The percentages do not have to match. You are also correct in saying that taking nothing from the career average means it will wait until later and therefore suffer less of an actuarial reduction. There is no point taking less than the maximum from the NPA60 final salary scheme if you are already over 60 since it gains nothing from being left until later...that is unless you were to get a pay rise over and above inflation, and even then that probably would be outweighed by the payments you would have missed in the intervening period. Add to this that such a pay increase is limited to 10% (or roughly £6k) over your current salary, would take many months before it would actually make a difference and is likely not to overtake the Method B calculation anyway!
Is there any benefit or not, if you take phased retirement at 59:11 or 60+? If you have a choice where npa is 60
If you later were to have a break in employment that triggered the payment of the entire remaining part of the final salary then there is a benefit to taking phased at 59+11.
This part would be considered to have been taken "early" and as such would NOT be subject to any future abatement if you then returned to a teaching post.
Whereas if you took phased at 60+ then once you trigger the rest it could be abated if you returned to work.
Hi David, thank you so much for your videos. Can you explain please how the hypothetical calculation works if you have a few breaks in service please... i had a break in 1998 for 2 years , then in 2003 for 3 years, then in 2022 for a year. Thank you
Each and every break creates a separate hypothetical calculation based on the rules in place at the time. These are compared and whichever produces the best pension is the one you get.
Your breaks from before 2007 will use the best single period of 365 days (1 year) from the previous 3 years. The one in 2022 will use the years from 2012 to 2022.
Thank you so much , that is really helpful
Could I also ask one follow on question please , my method b calculation shows my best years as being 2014 to 2017 , does the break in service protect those or I am at risk of losing my best final salary years ?
Hi Dave. Is the reduction in Final Salary pension for taking phased retirement before NPA of 60 calculated monthly or yearly? I.e if someone wanted to take P retirement at the end of a term which was several months before they turned 60 what percentage would it be reduced by? Many thanks for great video!
If I dropped to 4 days a week and took 75% of just my 80ths scheme (I’ve been in the scheme since 1993), I think that means that the 0.8 salary + 75% pension comes to more than my 100% salary. Is that allowed? Seems too good to be true! I’m currently aged 57yrs 9 months.
Yes, that is correct. Though taking the pension BEFORE 60 means you would not be subject to the rules on abatement that limit how much can be paid anyway.
Taking the pension "early" like this does mean it is reduced for life. Just the % you take, the part you leave until later will be based on your final salary when you finish and your age when you take it.
Why did I think you didn’t get your lump sum on phased retirement until you fully retired fully?
I don't know why you would think that. When you access the % of your pension in the phased retirement process that comes with the associated lump sum and the option to give up some of the pension for a lump sum.
Hi David, hopefully a quick question. Is it the case that the 'Deferred Choice Underpin', which I understand to mean deciding whether to remain as final salary or be calculated under the career average scheme rules for remedy period (April 2015 and 31 March 2022) has to be made at the start of phased retirement?
Ah, now, that is a very good question and I have also not seen a definitive answer in this regard. My gut feeling is that the choice would have to be made when you start taking any part of the pension, but I have no certain knowledge of that.
@@dfountain I guess I am going to find out as I am intending to start my phased retirement from April 2024. Which does prompt me to ask another question if I may. Given that we just had a pay rise in Sept 2023, would I be better hanging on until September 2024 before starting phased retirement? I am thinking that I would then have a full year of the higher salary but maybe it does not make much difference, also my statement shows my best years are for method B (years 2020-23)?
A little tricky on the best salary front but only if your Method B currently INCLUDES your salary since September 2023.
There is a problem in making the comparison between the Method B and your current salary because the Method B has only been revalued up to LAST April...it is currently "owed" 8 months worth of inflation and as such is going to easily stay ahead of your current pay rise...why?
Well, the Method B's increase in April 2024 is going to be 6.7% and that JUST beats the current 6.5% pay rise you've had.
So, why do I say "easily" given that is only a 0.2% difference.
Well, the current 6.5% pay rise is going to take ANOTHER 9 months before it has worked its way fully into the calculation, that is not until the end of August 2024. The Method B gets its 6.5% 5 months BEFORE that and then will get 5 month's worth of next year's inflation figure added it it by August 2024.
@@dfountain That makes perfect sense. Thank you!
@@dfountain TPS recently told me that as I am taking phased retirement in April I will receive a communication prior to this asking me how I want my transitional period (McCloud judgment) to be treated. It will give the figures both for staying in the final salary and moving to the career average scheme for the period so that I can make a choice on what to do (ie either stay in the final salary scheme for this period or alternatively move to the career average scheme from the start of this period).
Hi Dave - I've just left this under the Hypothetical Calculation video you posted - but that was well over a year ago - so i'm not sure you are checking for any new comments /questions ?? I'd really appreciate a bit of advice - and I'm hoping this is quite a straightforward Q for you ? ( see below)
This has been very informative - thanks so much for the video - but could still do with some very basic advice. I had 26 years of service up to and incl Dec 2019 - with best three years being 2009-20011. I then came out of the TPS scheme in dec 2019 (not by choice) when I moved to another school, and have been out of it ever since. I have now been given a 2 day a week contract for a year - which may/may not be extended beyond that. I envisage working another 5/6 years - but most likely part time - and certainly nowhere near the salary levels of 2009-2011 !! Put simply should rejoin I the TPS scheme ?
Yes, I did reply in the other video.
Being part-time the career average pension you add is actually cheaper than if you were full time. This is because your contribution is based on your actual salary and for the lower end can be as low as 7.4% compared to the normal full time rate of around 9.6%.
Hi Dave. Thank you so much for making the teachers pension clearer! My questions are about phased retirement.
When I reach 55 I plan to drop a day a week and start phased retirement. I can drawdown from my pension up to 75% to compensate for the drop in income. Please can you tell me the tax implications of doing this? If i drawdown 75% will I have to pay more tax than just 25%? Also am I correct in saying that if I did this I would receive 75% of my lump sum? Would this be actuarily reduced costing me thousands?
Also, if I used phased retirement from 55 to 60, will it narrow the choice for the best three years from the last ten if i fully retire at 60? For my final salary pension, the five years of phased retirement are unlikely to be my highest wages? Thank you.
Income from any source is taxed as income tax. Your pension will be added to your salary and taxed accordingly.
As your pension, or 75% of it, is likely to be similar, or less, than the amount you have reduced your salary by you should see very little change in the amount of income tax you will pay.
Yes, the lump sum, well 75% of it - the bit you are taking - is also actuarially reduced, so it is smaller than it would be compared to leaving it.
I factor this in when I do the calculations in this video: th-cam.com/video/IJZOzhl3FH8/w-d-xo.html
With regard to your final salary, and ten years that are used, yes, if you continue without a break your remaining 25% (or however much you didn't take) will be calculated using the 10 years leading up to the next time you take the pension. See "The Pay Plateau" video that I have made that explains how to protect this: th-cam.com/video/qP5XkqTM1f8/w-d-xo.html
Hi Dave - Thank you for your very useful advice and videos. I am planning to take phased retirement next year but not sure what percentage of my lump sum to take. I am currently in the 40% tax bracket but planning to take a big drop (3 days a week and none of my current responsibilities) which will put me in the 20% basic rate bracket (salary & 75 % of final salary pension included - not touching my career average as ridiculously low). My question is, what percentage of my lump sum should I take at the point of phased retirement in order to not be taxed 40% on it and also can I take a percentage of the lump sum every year until the pot is empty and will I be taxed 20% on it? Thank you
I cannot really give you "advice" on this as I have no financial qualifications - I am not a financial adviser, just an ex-teacher.
However, you have a basic misunderstanding of how the TP works. There is no "pot" of money.
You don't get to take out lumps of it at a time. You take a % of the pension and lump sum and then you can "sell" some of the pension for a greater lump sum (poor value in my opinion).
I am also very hesitant about basing such decisions on the current income tax rules, they can change at the drop of a hat (or Government). There are, currently, ways of managing the 40% income tax - simply putting more into a pension scheme for example to be taken out later when you finish working and your income drops to well inside the 20% bracket.
Thanks, that’s really very helpful. I have a question. Is there not another alternative to phased retirement (where one can take up to 75% of benefits for at least 20% reduction in salary, for one year, and where income must not be greater than before), which I have heard called ‘flexible retirement’ (which I think TPS simply consider as early retirement). This would involve taking all the pension and reducing salary by 20% or more (say by starting a part-time role). Have I got this wrong?
Not heard that term and certainly haven't come across anything other than the two options of;
1) Phased retirement and
2) Early retirement
1) Phased being where you need to 20% reduction in salary for 12 months (it can go back up after that point) and the reduction ignores any normal pay increases.
This doesn't require a break in employment or contract - though of course the contract would change.
You can choose to take part of each pension separately. For example, nothing from the career average and 75% from the final salary...or...50% from both etc.
You add to the career average pension with your subsequent service but there is no minimum service requirement thereafter unlike early retirement.
2) Early retirement where you take ALL of your teaching pensions before their normal pension ages but you have to have a break in contracts so that you are not employed in a TPS eligible post on the day you start the pension.
You have to take all of the pension you have built up to that point.
You start a "new" career average pension in your new post and you have to do a least a full year in order for that new pension to be qualified as a pension.
There is no limit or requirement to do 80%, you can earn as much as you like.
Hello David,
Following your fantastic "Pay Plateau" video, I wonder... just to confirm:
if a teacher Opts Out for one month before reaching 60, and takes 75% of the FS at 60 - Would the same average salary be used to calculate the remaining 25% of the FS years later?
Also, will the remaining 25% FS grow with inflation?
Many thanks.
No, the average salary is calculated again when you take the remaining 25% using the salaries in the previous 10 years from that point (or from previous breaks if you have any that are better - the change from full time to part-time is not considered a break unless you actually have a day or more between contracts)
The revaluation continues, so yes, you get the benefit of subsequent inflation.
@@dfountain Many thanks David.
And just to clarify, you’ve recently found out that phased retirement is not subject to abatement ?
Correct. I had a chat with someone at the TPS who pointed out that employment that carries on after taking phased retirement is classed as "continuous" employment and not "further" employment and as such is not subject to the rule on abatement (64 in the regulations)
@@dfountain thank you David 👏👏👏👏
Hello again David, Two questions please, if I may. For someone over 60 taking phased retirement, who is both in the final salary and average salary schemes, going part-time by dropping one day (20%) and taking 75% of their pension from the final salary scheme only. 1) What happens if they decide to fully retire in less than one year (I believe phased retirement requires one year of work while at 20%)? and 2) does the average salary pension continue to increase at 1/57 of the full pay figure or the 80% of the full pay figure? Thank you!
1) They can go at any time. The 1 year limitation is that their SALARY must NOT exceed the 80% from the previous 12 months and not that they must complete 12 months at 80% or less.
2) The career average pension is always calculated on the salary you are employed to receive, so it will be based on the 80% figure.
@@dfountain Thank you, that makes perfect sense. What happens if there is a pay rise after taking the phased retirement? Does the average salary pension increase by 1/57 of the increased 80% pay figure? Also, for the final salary scheme, given the same pay rise, does the remaining 25% benefit from the higher final salary or is this fixed at whatever the final salary figure was when starting the phased retirement?
I am told, but cannot find reference to this in the regulations, that "normal" pay rises are accounted for and would not breach the 80% limit if that was the only increase. I have yet to really get to grips with what this means if someone took phased retirement mid-academic year.
The career average is ALWAYS 1/57th of what you are paid...you are paid £570 the CA gets £10...you get paid £1140, the CA gets £20.
FINAL SALARY
The remaining 25% (or whatever you haven't taken) gets to use whatever the "final salary" is when you finish. So, it *could* be higher...but it could also be lower...and with inflation exceeding pay rises for the last 10+ years this latter possibility is quite likely! (Check out the video I have called "The Pay Plateau") th-cam.com/video/qP5XkqTM1f8/w-d-xo.html
@@dfountain Thanks, I’ll check out that video. Regarding the final salary pension 25%, in the case of a possible ‘normal’ pay rise after taking phased retirement - are we talking about the 100% or 80% final salary figure being used later when you finish to calculate the remaining 25% of the final salary pension, ie 25% pension = ((25% of total years) x (100% of final salary))/80? I am assuming it is the 100% figure, making this different to the career average, which you mention is using the 80% figure (the figure you get paid), ie pension added in a given year = 1/57 of salary paid that year, which is 80% given one day has been dropped. I hope this is making sense. Sorry about all the questions.
I think I see what you are getting at...if you want me to take a detailed look get in touch via my blog at dfountain.co.uk and I'll go through her statement to see if there's anything that needs attention.
The calculation of the "final salary" always uses the 100% figure no matter what part-time rate is worked.
For the phased retirement (for someone say aged 61, ie over their NPA for the final salary scheme but below the NPA for the career average), you mentioned that you can choose to take part of each pension separately (eg nothing from the career average and 75% from the final salary...or...50% from both etc.) So, I guess one could take 75% from both. Is that right? Also, is there anything to be gained by just taking 75% pension from the final scheme and zero from career average? I am thinking that the career average will have the actuarial percentage reduction applied, so does that mean it is better left alone?
Yes, you can take UP to 75% from each scheme. The percentages do not have to match.
You are also correct in saying that taking nothing from the career average means it will wait until later and therefore suffer less of an actuarial reduction. There is no point taking less than the maximum from the NPA60 final salary scheme if you are already over 60 since it gains nothing from being left until later...that is unless you were to get a pay rise over and above inflation, and even then that probably would be outweighed by the payments you would have missed in the intervening period. Add to this that such a pay increase is limited to 10% (or roughly £6k) over your current salary, would take many months before it would actually make a difference and is likely not to overtake the Method B calculation anyway!
Thanks
Hi David Is there a way that I can contact you please? Do you have an email address? Thank you
Hi Jackie, I believe you have found my blog and made contact there, I have just replied to you.