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How Wesleyan can help you achieve a retirement worth working for

June 10, 2024, 16:31 GMT+1
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How Wesleyan can help you achieve a retirement worth working for
  • With the right planning and financial expertise behind you, you can make stepping back from work a real step up...
How Wesleyan can help you achieve a retirement worth working for

As rewarding as teaching is, retirement can be a pretty exciting prospect.

It’s the chance to put you and your family first and enjoy time with the people and places you love the most.

There’s a lot to consider when thinking about life after work – like how to increase your retirement income, or how to use your tax-free pension lump sum in the best way.

But with the right planning and financial expertise behind you, you can make stepping back from work a real step up.

Here are a few key retirement tips courtesy of Wesleyan Financial Services, providers of specialist retirement advice for teachers. As experts in the education field, Wesleyan Financial Services can support you through every career stage and beyond, helping to ensure you have financial confidence, success and family security.

Consider the changing costs of finishing work

For many of us, retirement plans come down to ‘When can I afford to stop working?’ But often, people base their idea of how much money they’ll need on their current outgoings.

In reality, most people will see a dip in their outgoings in later life. Your mortgage is likely to be paid off, for example, and your children may have flown the nest.

On the other hand, you’ll also have more free time to do the things you love – meaning more money spent on holidays, seeing family or taking up new hobbies for example.

That’s why it’s important to consider what kind of retirement you want to have, so that you and your adviser can build a clear plan that matches your ambitions.

Think about access to your savings

Saving for retirement is a great habit to get into. But it’s important to think about how you’ll access the funds you’ve built up when the time comes.

You may be part of the Teachers’ Pension Scheme (TPS), hold a personal pension, have Prudential AVCs, savings and investments, or perhaps even property. You’ll need to consider how you’ll access these assets in the most efficient way.

Bear in mind that you may not be able to get your money as quickly as you need. There may be rules around your pensions, savings and investments that could affect when you can access your pot.

For your personal pensions, you’ve got a variety of options:

  • Leave your pension pot untouched
  • Buy a guaranteed income for life (annuity)
  • Take a flexible retirement income (flexi-access drawdown)
  • Take your pension pot as cash
  • Take your pension as several lump sums
  • Or a combination of the above

A specialist financial adviser from Wesleyan Financial Services can help you understand what might work best for you and will be on hand to advise and support you the whole way.

Early or phased retirement – know your options

Most people are familiar with the idea of early retirement. Under the Teachers’ Pension Scheme, you can currently choose to retire from 55 (likely rising to 57 in 2028). But how about phased retirement?

Phased retirement allows you to start accessing your pension early without fully calling time on teaching.

To remain eligible for TPS benefits, you’ll need to either reduce your teaching hours or move to a less senior position, with a new salary at least 20% less than the previous twelve months averaged earnings.

You can then take up to 75% of your pension, while continuing to grow your remaining pension pot.

It could be a great way for you to wind down towards your dream retirement. Just bear in mind that any pension you take before your Normal Pension Age (60, 65 or state pension age, depending on which part of the scheme you’re in) will normally be subject to reductions.

However, if you take a phased retirement after your normal retirement age, no reductions will be applied to your benefits.

Consider specialist financial advice at every step

If you are part of the TPS you are likely to have benefits in both the final salary scheme and the career average arrangement (CARE); however you could just have CARE membership. The type of member you are will determine the type of benefits you’ll receive, how your pension is calculated, and when you can collect your pension.

TPS is complex, but understanding it could be key to your retirement plans. That’s why it is important to seek support from specialists who understand your pension scheme and your profession.

Whilst retirement planning won’t always feel straightforward, the advisers at Wesleyan Financial Services are there to back you all the way, with specialist knowledge to show and explain your options at every stage. That’s why we are a NASUWT-approved financial advice partner.

Whether you’re looking to access your pension or make the most of your savings for the brightest possible future, come and find out more about our retirement planning advice for teachers.

Wesleyan Financial Services Ltd (Registered in England and Wales No. 1651212) is authorised and regulated by the Financial Conduct Authority. Registered Office: Colmore Circus, Birmingham B4 6AR. Telephone: 0345 351 2352. Calls may be recorded to help us provide, monitor and improve our services to you.