For some people, the idea of not going to work sounds mind-blowingly dull. It might also be that the sense of drive and ambition to succeed and push forward an agenda still burns inside.
Work outside of a school
For many teachers, leaving the classroom is the start of a journey to improving education for others in different roles. Whether it is through consultancy or by working with assessment organisations, teachers do work beyond retirement.
It might also be that you want to work in another field. Something is appealing about a simple job at the supermarket or maybe even delivering goods, especially after a life of thinking quite hard in teaching. For some, such work is necessary as there is a need to bolster finances to a level that makes it comfortable enough to live each week.
Outside of a school and pensionable service, such work is unlikely to impact your Teachers’ Pension benefits. If you are unsure, you might want to consider talking to an independent advisor.
Work inside a school
There are potential consequences to your Teachers’ Pension if you return to work in a school after retirement. Some love the classroom so much that the idea of not turning up each day is mind-blowing. However, before making this decision – or anything relating to work and your pension – you might want to discuss this with an advisor.
It is crucial that you know that your employer will immediately inform the Teachers’ Pension Scheme once you return to teaching. In some circumstances, the Teachers’ Pension Scheme may require you to complete a certificate of re-employment.
If you are receiving your Final Salary pension early, the payments may be suspended. This Final Salary Pension will be impacted if you exceed your Salary of Reference, which is the highest salary in the average salary period used to calculate your pension. How this figure is calculated is complex and involves many mandatory and discretionary payments made by your employer. Therefore, before deciding to re-enter the classroom, check in with an advisor.
If you return to the classroom and your service is pensionable, you can enjoy further retirement benefits when you apply. This benefit is called Additional Service After Retirement, and to qualify for this benefit, you must have more than one year of ASAR service.
The content in this article was correct on 29th June 2021. You should not rely on this article to make important financial decisions. Teachers Financial Planning offers advice on the different types of retirement available with the Teachers’ Pension Scheme. Please use the contact form below to arrange an informal chat with an advisor and see how we can help you.