Now you have started to consider your emotional needs for retirement, you may have noticed that living a full life will take money during this stage of your life. You will want to make sure your finances are in order and that you are comfortable enough to live this purposeful life.
Your teachers’ pension fund
As your teachers’ pension takes a couple of months to process, likely, this is already in hand. Your employer will have signed off on your retirement, and your first pension payment will be the day before your birth date in August. So, if you were born on the 7th, then the money will come through on the 6th. If you know you are retiring at the end of July, but you have not been in contact with the Teachers’ Pension Scheme, you may wish to contact them or an independent financial advisor who can assist you in this process.
Part of your pension fund will come as a lump sum, and you may want to give some thought to how to make this money work for you. Again, it is wise to contact an independent financial advisor to support you here.
Claiming your state pension
If you have reached your Normal Pension Age, then you will also claim your state pension on retirement. This pension is a regular payment from the Government. A Basic State Pension is based on your previous National Insurance contributions. If you have 30 years of contributions, then the Basic State Pension is currently £137.60 per week.
You can claim your state pension and continue working, and it is also worth knowing that you become eligible for other benefits, such as Housing Benefit and Council Tax Support, should you need this.
Tracing old pensions
It is rare nowadays for people to have one career throughout life, and there are likely pension funds set up that can now bolster your income. Even if you have been a teacher your whole life, you may have worked for an examination board at the same time and earned enough that they set up a work-based pension scheme for you.
While it might sound tricky to find all the pensions you are owed, the Pension Tracing Service will help you find out what pensions are in your name.
Deal with your debts
If you want peace of mind in retirement, then you need to be free of debt. You are already on a limited income, and making repayments can be tricky, especially if you do not have a means of boosting your finances with additional work opportunities.
It might not be a problem for you, but if you find you regularly worrying about money and struggling to pay your bills, you may want to seek support.
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.