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Phased retirement

Easy does it

Retiring can seem a daunting prospect. Phased retirement can help teachers move gradually from work to retirement, as Nick Kirby explains.

As you get older your priorities change. You may want to see your family more, or take up hobbies. You might not want to work at the chalkface five days a week.

Until recently, the only way a teacher could get their pension was to retire and take it all. Some teachers left work and took their pension but returned, perhaps on supply. But for most, they were either working as a teacher or not.

Phased retirement is a more fluid system that allows teachers to keep working but in a reduced capacity – perhaps by moving to part-time work or a less strenuous post. The income loss is made up by allowing you to take part of your pension. This allows teachers to move gradually into retirement.

Phased retirement is becoming popular, with over 900 cases in 2011/12 – 3 per cent of all retirements. The Union believes the trend will continue, especially given the Government’s proposals to make teachers work until 68 for a full pension.

Who can claim it?

To claim phased retirement you must be 55 or over and have service in the Teachers’ Pension Scheme after 31 December 2006. To qualify, you must reduce your pensionable salary by 20 per cent or more for at least 12 months.

The requirement to reduce pensionable salary by at least 20 per cent means teachers can, for example, switch from a five-day to a four-day week and still qualify.

How does it work?

You can draw up to 75 per cent of your pension benefits and keep on working. You can currently exercise phased retirement twice before finally retiring, meaning you can change your arrangements again and take more pension.

If you’re under your normal pension age (NPA) – the age at which you can take your pension rights in full – you’ll get

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