If retirement feels like it’s still a few years away yet, and you’re not sure you’ve reached your full potential, maybe a new role with extra responsibility could be a good next step – and a promotion could give your pension a nice little boost too.
The example below is of a member with Special Class Status.
What would it mean for my pension if I took a promotion from band 7 to band 8b and delayed my retirement?
|Retire at 55:||£18,451 a year for life||Lump sum of £46,765|
|Retire at 60:||£33,004 a year for life: That’s £14,553 more per year than retiring at 55||Lump sum of £72,513: That’s £25,748 more than retiring at 55|
- 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 a member with Special Class Status who reached age 55 after 31 March 2022, so did not have full protection from moving into the 2015 Scheme.
- Individual does not have Mental Health Officer Status.
- Individual 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. Check your Special Class status, or your Mental Health Officer Status.
- Find out which pension scheme you are a member of.
See below for more detail
|Retire at 55||1995 Section||2015 Scheme||Total|
|Pension||£15,588 p.a.||£2,863 p.a.*||£18,451 p.a.|
|Retire at 60||1995 Section||2015 Scheme||Total|
|Pension||£24,171 p.a.||£8,833 p.a.*||£33,004 p.a.|
*includes early retirement adjustment of 43.7% at 55 and 30% at 60.
Current members of the 1995 Section may be subject to membership time limits so may not be able to continue contributing to their pension if they choose to delay retirement.
Talk to your manager to find out more about your flexible working options.