After working alongside dedicated and caring colleagues for many years, you may feel mixed emotions about retirement. Although the idea of spending more time doing the things you enjoy is appealing, you might feel like you’re not ready to stop working yet – you may feel like you have more to give.
If you are a member with Special Class Status and can retire at 55, see what it would mean for your pension to delay your retirement by a few years.
The example below is of a member that retires at 60.
What would it mean for my pension if I delayed my retirement by a few years?
|Retire at 60:||£18,915 a year for life||Lump sum of £56,744|
|Retire at 61:||£20,055 a year for life: That’s £1,140 more per year than retiring at 60||Lump sum of £60,165: That’s £3,421 more than retiring at 60|
|Retire at 65:||£25,074 a year for life: That’s £6,159 more per year than retiring at 60||Lump sum of £65,124: That’s £8,380 more than retiring at 60|
- The member was protected from moving to the 2015 scheme on 1 April 2015 and so remained in the 1995 scheme beyond this date. If they continue working beyond 1 April 2022, all benefits built up from this date will be in the 2015 scheme.
- Individual is aged 60 and has a pensionable salary of £44,503 (Band 7).
- The illustrations are based on the current actuarial factors in force in the Scheme (August 2021 – here).
- The illustrations do not allow for the uptake of certain options that members may be able to exercise, for example, they do not allow for the exchange of additional pension for cash.
- Salary increases after the 2021 award (3%) are assumed to be 2% p.a.
- Figures quoted may incorporate a small degree of rounding.
- All of the examples are illustrative only and are not designed to represent the particular circumstances of any one individual. Find out which pension scheme you are a member.
See below for more detail:
|Retire at 60||1995 Section||2015 Scheme||Total|
|Pension||£18,915 p.a.||£0||£18,915 p.a.|
|Retire at 61||1995 Section||2015 Scheme||Total|
|Pension||£20,055 p.a.||£0||£20,055 p.a.|
|Retire at 65||1995 Section||2015 Scheme||Total|
|Pension||£21,708 p.a.*||£3,366 p.a.**||£25,074 p.a.|
*1995 Section benefits do not receive a late retirement uplift after age 60 but they are still linked to salary so can continue to increase.
**includes early retirement adjustment factor of 0.896 at age 60.
Talk to your manager to find out more about your flexible working options.