Those Nearing Retirement

Retiring from work involves not just a sea change in your lifestyle, but also some big financial decisions and quite a bit of form filling to claim your State Pension and Teachers Pension. To get yourself in the best possible shape for this, it's best to start planning in the years before you retire.

That's where we come in. Our Financial Consultants know the Teachers Pension Scheme inside out and can help you assess your needs, benefits and wider options. They can also help you make this transition as smooth as possible, by guiding you through what's involved and helping you make good decisions for the future.

• The importance of financial reviews in the years before you retire

  In the run up to retirement we recommend having at least one full financial review, but ideally this would happen at 10 years, 5 years and 1 year before you finally retire. This will give you time to fine tune or even rethink based on your latest position and make any financial adjustments that could be beneficial to you.

  But if you have left it to the last minute, don't worry we can still help.

• How to work out what your Teachers Pension will be

  For those who joined the scheme before 1st January 2007, to determine your pension income, the Teachers Pension Scheme takes into account 1/80th of your Average Salary* for every year that you have worked. The pension will be taxable, in the same way as earned income.

  This can be expressed as follows:

  

  In addition, you will get a tax free cash lump sum which is equal to 3 times your initial annual pension.

  You may forego part of your pension in favour of a higher tax free cash lump sum. The maximum lump sum that you can take is 25% of the capital value of your pension. For every £12 extra that you take in cash, your pension will be reduced by £1 per annum.

  *Your Final Average Salary is the better of:

  • The pensionable salary you received in the last 12 months or
  • The average salary of the best consecutive 3 years salary in the last 10 years of service, revalued in line with the Retail Price Index.
• How we can help when you come to retire

  We can:

  • Explain what you'll get from the Teachers Pension Scheme and suggest ways of plugging any gaps
  • Explore the impact of taking early or partial retirement
  • Help you apply for your Teachers Pension (this must be done at least 4 months before your retirement date)
  • Make recommendations for investing your lump sum or any other capital in tax-efficient ways to generate the income or capital growth you need
  • Make suggestions about addressing inheritance tax issues and making a Will if you don't already have one.

  The easiest way to find out your position is to speak to one of our Financial Consultants. They know the Teachers Pension Scheme inside out, and will be only too happy to explain your entitlement and how to make up any shortfalls. To find out more, go to Personal Financial Advice or phone or email us.

  You may also like to download our Financial Planning Guide:

  Financial Planning Guide for Teachers Approaching Retirement

• Why choose Teachers Assurance?

  Started in 1877 by teachers - for teachers.

  15,000 teachers a year in 3,000 schools in England and Wales turn to us for financial direction. (And that's excluding other teachers who phone in or email us.)

  No one understands the financial needs of teachers better than us.

  As a mutual friendly society our business is built on helping teachers to:

  • Protect themselves and their families
  • Save for the future
  • Invest efficiently
  • Get the most suitable advice
  • Make confident financial decisions

  To find out more about how we treat our customers go to the following page:

  • About us - See who we are and what you can expect from us.
• What if I need your help or advice?

  If you need our help or advice, please give us a call:

  0800 056 0563
  8.30am to 8pm Weekdays
  9am to 1pm Saturdays

  To help us continually improve customer service, calls may be recorded or monitored.

  Ask us for information

  Our Helpline can answer any questions you have or post you an application pack for any of the products on offer.

  Ask us for advice

  Our expert Financial Consultants can help you choose the most suitable products for your needs, you can ask for personal financial advice over the phone or face to face .

  Ask us for a school visit - Money Talks!

  Book a school visit for one of our Financial Consultants to hold a free financial planning session for teachers in your school.

  Our Consultants are only able to advise on our own products and services and those of selected third parties.

  You may also like to download one of our three Financial Planning Guides, depending where you are in your career:

  Financial Planning Guide for New Teachers

  Financial Planning Guide for Mid Career Teachers

  Financial Planning Guide for Teachers Approaching Retirement

©Teachers Assurance 2008

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