It might interest you to learn that half of the pensioners retired earlier than planned. You may have a solid plot line to your route into retirement. However, we are not always in charge of circumstance. Therefore, we should consider the possibility of illness to ourselves or our relatives. Most of the 50% who stopped earlier than planned was due to personal health concerns or due to responsibilities for the care of others.
The survey by Aegon also found that 68% of workers over 50 feared the consequence of failing health. Another 49% commented on the possibility that an ailing relative may require their help before the planned retirement date.
A gradual flight plan to your teachers’ pension
In a perfect world, you would want to plan a gradual flight plan to your retirement from teaching. If you are looking to retire at your Normal Pension Age (NPA), let’s say 66, then you will start preparation from the age of 63. This might include reducing your hours, taking on less responsibility, or even introducing new interests into your schedule. The shock of retirement can leave some people with a feeling of dislocation, so this sort of preparation is seen as essential.
However, as Robert Burns wisely told us, the best-laid plans of mice and men often go awry. You may find that these plans are curtailed, and you need a contingency in place.
You are not alone
There are a record number of over 50s in the workforce, making a valuable contribution to the work of the economy and country. With longer life expectancy it is not surprising that people wish to work longer and extend a period of perceived usefulness.
Wishing to work longer and being able to work longer is not the same. Having to retire earlier than planned can have a significant impact on your finances. The value, both of the lump sump and annual rate, will be impacted by an earlier than expected retirement. Therefore, it is essential to understand how you would financially cope with this forced retirement. It is a good idea to seek financial advice to make sure you are ready for such circumstances. Will your Teachers’ Pension Scheme be there to support you?
The content in this article was correct on 28th March 2019. You should not rely on this article to make important financial decisions. Teachers Financial Planning offers advice on 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.