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Planning for retirement

Get ready for the off

Retirement is the first step to the rest of your life. Read Nick Kirby’s guide on how to prepare.

Retirement should be a reward for a career spent in teaching. It should be something you’ve thought about – what activities you’ll develop, holiday plans and so on. There are some things you need to do to make sure your transition is a smooth one.

Handing in your notice

This shouldn’t be a spur of the moment decision, but something you’ve thought about. Most teachers must give two months’ notice of retirement in the autumn and spring terms and three months in summer. To retire on 31 August, you have to hand in your notice by 31 May.

Claiming your pension

Just because you’re retiring doesn’t mean your pension arrives seamlessly – you’ve got to claim it. You should apply to Teachers’ Pensions three or four months before your retirement date. If you’ve reached your ‘normal pension age’ – 60 in most current cases – your pension is payable from the day after you leave.

Most people retiring before the scheme’s normal pension age will do so on an ‘actuarially reduced’ basis. Your pension is reduced because you’re expected to receive it for longer. Your employer has to agree to you claiming an actuarially reduced pension. Your employer can only hold up a pension for six months, however. Or you can resign and claim your pension six weeks after you leave.

You’ll have to fill out a form either way. You can apply online at www.teacherspensions.co.uk or paper forms can be supplied by your employer or downloaded from the website.

Read the forms carefully. If you joined before 1 January 2007 you automatically get three times your annual pension as tax-free cash, but there is an option to convert more pension to cash. Signing the form means you accept the conditions, which include informing Teachers’ Pensions if you are re-employed in teaching.

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