I Am Going To Retire

The Case

Dr Jane Price is 57 years old and a Consultant Psychiatrist in the Midlands area.  She is a member of the ‘1995 section’ of the pension scheme.  She has Mental Health Officer Status. She is a top level consultant with a Bronze CEA, giving her total pensionable pay of £141,234.  Due to the fact that she has benefited from ‘doubling up’, she has accrued exactly 41 years service. 

Jane is concerned about the new tax changes to the Annual and Lifetime Allowances.   She wants to know what her retirement options are.

The Issues

• When can Jane retire without incurring an actuarial reduction?
• Will Jane be in excess of the allowances?
• How can Jane take benefits?
• How will Jane pay any tax charges that will apply?

The Options

Given Jane’s income and length of service, there is a strong possibility that she will have both Annual and Lifetime Allowance charges and she should contact us urgently to discuss these.

As Jane has MHO status, she can draw benefits from the age of 55 without an actuarial reduction.  Depending upon her lifestyle and working choices, Jane has two main retirement options:

• Full Retirement – This would enable Jane to take her pension benefits and start enjoying her full retirement
• ’24 Hour’ Retirement – This would enable Jane to draw her pension and return to work, however, she should be aware of the rules of abatement, which restricts return to work salary plus pension being greater than her pre-retirement salary.

Jane should contact us to review the projections for the various options open to her and consider which best meet her retirement goals.