When do you plan on retiring...?

Icsics · 10-03-2019 4:48pm #1

One of my colleagues recently retired & it came as a huge surprise because she wasn't necessarily the 'age' or next according to 'service'. But the amount of change & increased workload meant she felt that enough was enough. This has got all the rest of us thinking! So how do people go about getting ready to retire to maximise the pension? Any tips appreciated!

rainbowtrout · 11-03-2019 12:47am

It probably depends a lot on a person's circumstances too. Is there a spouse's wage coming in? Children in school/college? Mortgage or other substantial loans to be paid off? What age were they when they started teaching? Career break, periods of unemployment/casual subbing, job share, unpaid leave (particularly for women). School environment can have a role too. Some schools are tougher than others to teach in. Having a post can add to pension and allow a person go a couple of years earlier than a teacher who doesn't have a post.

I will have 33 years done when I hit 55. I'm a textbook case. Started in a permanent job at 22, so I can go then, albeit without full pension. That's about 15 years from now. I have no idea how I will feel in 15 years time about the job and whether I will want to go then or hold out for full pension at 62.

evolving_doors · 11-03-2019 11:21am

When they change the junior cycle to the latest failed initiative... that's the time to leave.

spurious · 11-03-2019 2:20pm

I went early a few years ago.

The absolute last straw (for me) was the S&S being extended across the board. I always maintained it was doing younger and small contract teachers out of paid work and i was not going to be part of that, having previously opted out.

I was lucky that due entirely to an accident of birth, I was born in a time which allowed me to be able to afford buy a house on my own. The house was paid off and I owed nothing to anyone.

As the great Swedish philosophers Abba said 'it just wasn't fun anymore', so it was time to go.

Money is fairly tight, but I do bits and pieces to add to the very small pension. I don't miss it at all.

endacl · 11-03-2019 2:22pm

I’m out the door at 55. I’ve a second part-time career that I’d like to make full time. Teaching is my pension, so, as soon as the numbers make sense, I’m gone. 55 is an upper limit!

maynooth_rules · 11-03-2019 3:23pm

I would have quite happy teached until I was 65/66. But to be utterly blunt, the shambles they have made with 'Junior Cycle reform' has turned me off the profession. If, and I would be fairly certain it will, LC reform goes down the same route then I would hope to get out as soon as I can clear my mortgage and live reasonably well.......which will probably be 67:D

Icsics · 11-03-2019 3:48pm

Thanks for the replies & I know a lot depends on personal circumstances. I indeed on going to the retirement seminars in Nov. Can I ask people who have retired, what should the first step in planning it be? What section of the Dept do I ring?

Simple_Simone · 11-03-2019 3:52pm

Icsics wrote: »

Thanks for the replies & I know a lot depends on personal circumstances. I indeed on going to the retirement seminars in Nov. Can I ask people who have retired, what should the first step in planning it be? What section of the Dept do I ring?

Info is all here:-

https://www.education.ie/en/Education-Staff/Services/Retirement-Pensions/

Why would you need to ring them? If you want a pension forecast, you can do it online at this link:

https://www.education.ie/en/Education-Staff/Services/Retirement-Pensions/Pensions-Modeller/Pensions-Modeller.html

Icsics · 11-03-2019 4:13pm

Simple_Simone wrote: »

Info is all here:-

https://www.education.ie/en/Education-Staff/Services/Retirement-Pensions/

Why would you need to ring them? If you want a pension forecast, you can do it online at this link:

https://www.education.ie/en/Education-Staff/Services/Retirement-Pensions/Pensions-Modeller/Pensions-Modeller.html

Great thanks, was just looking for a starting point!

doc_17 · 11-03-2019 9:50pm

Post 04 so if want 100% of my pension I have to go until I’m 66.

But I’m bailing at 60. It’s not a job I’d like at that age

honeybear · 11-03-2019 10:36pm

I'd love to go at 56-I'll only have 30 years service so I really need to think about possible AVC's & increased savings. I've no dependants but would love to enjoy my latter years. I know of 2 healthy ladies who retired on full pensions who died unexpectedly months after retiring. I'd love to hear from anyone who retired very early.

Icsics · 11-03-2019 10:44pm

From what I gather 33 is the magic number, at least that's what everyone in my school is aiming for!

rainbowtrout · 12-03-2019 12:35am

Icsics wrote: »

From what I gather 33 is the magic number, at least that's what everyone in my school is aiming for!

Ya, that's the going in at 22 and leaving at 55 with 33 years service and pension being paid out. Can still mark for the SEC in the summer if you're into that, or take a part time job with no stress doing something completely different.

solerina · 12-03-2019 1:31pm

I would love to retire before 60, so 58 or 59. Have been paying AVCs for about 15 years now so I can do that, almost everyone on staff here have retired before they turned 59 so I feel it’s not really a job for the over 60s.

Icsics · 12-03-2019 2:01pm

solerina wrote: »

I would love to retire before 60, so 58 or 59. Have been paying AVCs for about 15 years now so I can do that, almost everyone on staff here have retired before they turned 59 so I feel it’s not really a job for the over 60s.

Can I ask did you organise your AVCs through Cornmarket or Dept? Do they relate only to lump sum?

doc_17 · 12-03-2019 3:27pm

Ene. With AVS it’s hard to retire early if you are Post 04

mtoutlemonde · 12-03-2019 3:34pm

doc_17 wrote: »

Ene. With AVS it’s hard to retire early if you are Post 04

Why is that?? Had Cornmarket telling me that I would need AVCs to make up the years I was retired prior to receiving the old age pension??

Squatter · 12-03-2019 3:39pm

Icsics wrote: »

Can I ask did you organise your AVCs through Cornmarket or Dept? Do they relate only to lump sum?

You can't arrange AVCs through the Department. Although you may be able to buy added years. Look for threads here and on a well known financial forum about whether AVCs or the purchase of service is the better way to go. Don't just rely on the Cornmarket sales consultant.

doc_17 · 12-03-2019 4:36pm

mtoutlemonde wrote: »

Why is that?? Had Cornmarket telling me that I would need AVCs to make up the years I was retired prior to receiving the old age pension??

You don’t get the State Pension until you’re 68. So you’d only be in 12k plus whatever your avc gives you, probably 10-12k depending on how lucky you are and how much you put in

solerina · 12-03-2019 7:47pm

Icsics wrote: »

Can I ask did you organise your AVCs through Cornmarket or Dept? Do they relate only to lump sum?

I have them through Cornmarket, I won’t have paid in 40 years pension contributions so the AVCs will make up the shortfall in both my lump sum and in the pension payments themselves.
I possibly have enough paid in already to stop them now...that’s one thing I am not sure about though !! Does anyone know ??

trihead · 12-03-2019 7:48pm

You can buy back years 'notional service' (most can) This is one of the best ways to go early on a full pension or to increase your years. Its not cheap but its tax deductible.

Icsics · 12-03-2019 7:51pm

trihead wrote: »

You can buy back years 'notional service' (most can) This is one of the best ways to go early on a full pension or to increase your years. Its not cheap but its tax deductible.

Thanks, how do I go about this? Can I do it for years spent teaching abroad?

Bobtheman · 12-03-2019 9:58pm

Going at 60. By then the entire thing will be wrecked. Lambs to the slaughter my fellow teachers. Always amazes me how tough people are in the classroom but have their spine removed or their balls when it comes to standing up to preventing their conditions deteriorating.

I'd plan a few years out. Be fully informed of pension etc.
I plan to have a second income on stream by time I leave

Teacher0101 · 13-03-2019 3:25pm

Good point Bobtheman.

Last year we had lunchtime strikes with placards - totally ineffective and stupid.
There are loads of young teachers who are afraid to speak out lest they get a 'bad name'.

All 5th and 6th years in my school are going to protest about global warming on Friday.
Good ol Leo doesn't say we should protest about current education system though, eh?
Not much street cred in that for him.
We are professionals and can't organize a protest?

I would strike for a week, just walk out - even without pay, and look at the carnage on mothers and fathers faces. Maybe then young teachers wouldn't be subjected to abuse from stay at home mothers who believe their kids would never lie.

I'd be there til I'm 68. I'd stick it out and do **** all. Just to piss them off.

Coming off the inservices, teachers are just a little naive when it comes to workload. Take it easy - these things fall into place. It's highly stressful if you're doing too much. Hey, they all pass in the end - so why bother with the kids who don't care themselves.

gaiscioch · 15-03-2019 1:14pm

trihead wrote: »

You can buy back years 'notional service' (most can) This is one of the best ways to go early on a full pension or to increase your years. Its not cheap but its tax deductible.

You will also be penalised if you decide to go earlier, which is a huge downside to notional service. If you are certain you will last until the age you agree, go for it, but I went for AVCs as they were more flexible on that important point. I had planned on notional service but when the financial adviser showed me a graph with the penalties if I decided to go earlier, it made no sense. Everybody here should be going away and paying a small fee (I paid €150) for independent financial advice so that they are informed about all these products.

gaiscioch · 15-03-2019 1:25pm

Squatter wrote: »

You can't arrange AVCs through the Department. Although you may be able to buy added years. Look for threads here and on a well known financial forum about whether AVCs or the purchase of service is the better way to go. Don't just rely on the Cornmarket sales consultant.

I couldn't agree more. Don't be foolish enough to rely on a Cornmarket salesman. My advice was the returns on their AVCs (via Irish Life) are far less than what you would get with an AVC with, for instance, Zurich. Also, the Irish Life/Cornmarket commissions are far higher. If you're with Cornmarket it's definitely time for you to look at independent comparative statistics on their returns and their commissions compared to the same with competitors. It's an eye-opening experience.

Seriously, we need a mega sticky financial/pensions thread here for teachers because there's loads of really good info but it's now scattered across the forum naturally enough. A huge number of teachers are absolutely clueless about their finances. Getting serious about them when they approach retirement is a bit spaced, to be charitable about it. Do it now in your 20s/30s/40s.

gaiscioch · 15-03-2019 1:40pm

Icsics wrote: »

Can I ask did you organise your AVCs through Cornmarket or Dept? Do they relate only to lump sum?

You can't organise your AVCs through the Department, unfortunately. The only one they facilitate as a deduction from salary is the ASTI/Cornmarket AVC, which is poor value. The ASTI really should be attaching themselves to a better value AVC.

When I stopped my Cornmarket one, I paid Zurich directly for a year in advance, uploaded their cert to Revenue's website, and Revenue spread my tax repayment out across the following year. It would be more convenient to have a salary deduction so very well done to Cornmarket for having a monopoly on that privileged position.

dingding · 15-03-2019 1:59pm

gaiscioch wrote: »

. It would be more convenient to have a salary deduction so very well done to Cornmarket for having a monopoly on that privileged position.

Also applies to the TUI. Surely the union should act in the best interests of their members. Not in every case, many of the financial products represent very poor value or are bundled with less necessary products to boost cornmarkets profits.

Icsics · 15-03-2019 4:22pm

Thanks everyone great advice

dingding · 15-03-2019 8:06pm

https://www.askaboutmoney.com/forums/public-sector-pensions.61/

Some great advice in the link above.

rainbowtrout · 15-03-2019 8:10pm

gaiscioch wrote: »

You can't organise your AVCs through the Department, unfortunately. The only one they facilitate as a deduction from salary is the ASTI/Cornmarket AVC, which is poor value. The ASTI really should be attaching themselves to a better value AVC.

When I stopped my Cornmarket one, I paid Zurich directly for a year in advance, uploaded their cert to Revenue's website, and Revenue spread my tax repayment out across the following year. It would be more convenient to have a salary deduction so very well done to Cornmarket for having a monopoly on that privileged position.

What have you done with your Cornmarket AVC?
Is it just frozen until retirement? Will there be any fees on it? Can you transfer any of it to another AVC?

When do you plan on retiring...?

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