If I Have A Pension Of £17,000 Per Annum........

[peachybabe]

How much will I get per month and what deductions will I have stopped? I am a single female, 55 years old, thinking of taking early retirement from local government.

Never been good with figures so any help would be appreciated!

[sunny-dave]

The only deduction will be income tax.

Assuming you have no other (taxable) income.

You will pay around £1500 tax per year and therefore have a pension of around £1290 per month.

[peachybabe]

Many thanks for that! Now to work out my monthly outgoings..............!

[dave50]

Must be nice to retire at 55 with a pension of £17000 a month. A prime example of everything that is unfair about public sector pensions!

[sunny-dave]

You might want to enquire with your pension department about "levelling" - this will give you a higher pension now but a lower one from age 66 when your state pension kicks in.

In theory this means that your total pension income remains constant through your retirement - it does leave you exposed to any changes in entitlement that future governments may make though.

[mazie]

It's per annum not per month dave50

[hc4361]

17k per annum, dave. And many private pensions have done very well, too.

[sunny-dave]

Oh for heaven's sake dave50 - stop being a miserable, jealous old codger.

That pension has been paid for over many, many years and was part of the contract of employment that the OP signed when she started work.

[peachybabe]

Ha ha!! 17k a month! I wouldn't even have to THINK about whether to retire. I'd jump at the chance! Been paying in for 36yrs so it's not bad, but not brilliant either! I am grateful enough to realise that it's still more than many people get paid while working!

[New Judge]

There is nothing inherently unfair about public sector pensions. As has been said, they were part of the deal when the employee signed up to them, they have been paid for by considerable deductions over a long period (in this case 36 years) and usually involve deductions of around 9% (more for police officers).

What is unfair is for employers to change the rules for existing members midstream. It is scarcely they fault that the scheme has been badly administered (and in fact run like the State pension scheme with current contributions being used to meet current liabilities).

[factor-fiction]

>What is unfair is for employers to change the rules for existing members midstream
Changes are made to schemes -public and private- and nearly always now are less favourable.
However some reading New Judge's post may be under the impression that pension changes are retropsective. I'm sure this is not the case- schemes are not changed retrospectively -benefits earned to date (e.g. under final salary) are preserved and it's only future terms that change (e.g. future benefits from future contributions are on Career Average basis).

[factor-fiction]

Anyway, good luck to you, peachybabe. Have you had a quote showing that's what you'd get at 55- i.e. after any actuarial reduction for drawing it early?

[Peter Pedant]

FF is spot on - Pension changes are limited by not being able to change the benefits of contributions already made.

and the only pension that is better as a result of litigation is Judges' hem hem where their lordships ruled that part time judges like poor-girl Shri Blair are entitled to full judges pensions


Teachers' pensions have a fund and have been crappily mismanaged.

NHS pensions - at present the doctors contributions are two billion in EXCESS not deficit of current pensions - cross over point is not before 2026.


and I agree with the tax calc - first 9k or thereabouts is tax free and then the next 8k at 20% is a drink off £1600 p a

[boxtops]

Much may depend on your tax code, too, as I have found to my cost.

[dave50]

Sorry, i meant £17000 a year. Which incidentally mine will be nowhere near that even when I get to 65 and I will have been paying in for 45 years. However it might have been if Gordon Brown hadn't destroyed the private pension schemes of millions in 1997 but of course he needed that money to bribe benefit claimants and public sector workers to vote Labour.

[Peter Pedant]

Dave sounz as tho you are a teacher - the average is £5 000.

[factor-fiction]

Hi dave
If you are in a company pension scheme then it will be a defined benefit scheme based on final/average salary, so Gordon Brown's changes will have drastically affected the pension fund but shouldn't directly affect your benefits

[factor-fiction]

Averages are very misleading PP, as you know. My teacher's pension is on track to be under £1500 a year- but that's because I was employed directly as a teacher for 3 years. A teacher with 30 years service would get more than £15000 pa pension at retirement

[peachybabe]

factor-fiction. Yep, got my figures, and have sat down to add up EVERYTHING that I currently pay out. I won't actually be much worse off, and will ultimately be saving 4 hrs travelling a day plus diesel! Lets hope they are willing to let me go!

[Alan1]

I have a pension pot of £1800 per annum how much will i get if i take a lump sum