Do I Have to Take My Teacher’s Pension at 60

Do I Have to Take My Teacher’s Pension at 60?

If you are a member of the Teachers’ Pension Scheme, you may be approaching age 60 and wondering whether you are required to start taking your pension. The short answer is no — you do not have to take your pension at 60. The age at which you take your teacher’s pension depends on your service history, the scheme you are in, and your personal retirement plans.

This article explains your options, including what happens if you take your pension early, at 60, or later.

What is your normal pension age?

The Teachers’ Pension Scheme has different sections with different pension ages:

• If you are in the final salary scheme, your normal pension age is either 60 or 65, depending on when you joined

• If you are in the career average (CARE) scheme, your normal pension age is linked to your State Pension age

You may have benefits in both sections, meaning you could access part of your pension at 60 and another part later.

Do I have to take my pension at 60?

No. You are not required to take your teacher’s pension at age 60. You can:

• Take it before 60, from age 55, with a reduction for early payment

• Take it at 60, if that is your normal pension age under the final salary scheme

• Defer it past 60, which may increase your annual pension amount

You can also take part of your pension and leave the rest until a later date. This is sometimes referred to as phased retirement.

What happens if I take my pension early?

You can take your teacher’s pension from age 55, but it will be actuarially reduced to account for the longer payment period.

For example:

• If your normal pension age is 60 and you take it at 55, your pension may be reduced by around 20 to 25 percent

• If your normal pension age is 65 or linked to your State Pension age, the reduction will be larger if you claim at 55 or 60

You will need to decide whether taking a smaller pension early suits your financial needs and lifestyle.

What happens if I delay taking my pension past 60?

If you delay taking your pension beyond your normal pension age, the benefits will usually be increased. This is called late retirement uplift.

For each year you defer your pension:

• Your annual income may increase

• Your total retirement income could be higher over time, depending on how long you live

• You may continue working and contributing to build further benefits if you are in the career average scheme

There is no requirement to stop working when you take your pension. You can continue teaching and take your pension under the phased retirement rules if eligible.

Can I take part of my pension and continue working?

Yes. The scheme allows for phased retirement, which means:

• You can take up to 75 percent of your pension

• You must reduce your salary by at least 20 percent for at least 12 months

• You can build up more pension benefits while continuing to work part time

This is a flexible option if you are not ready to stop working completely but want to ease into retirement.

What should I consider before taking my pension?

Here are some important questions to think about:

• What is your normal pension age for each section of the scheme?

• Do you need the income now, or can you afford to delay?

• Will taking your pension early reduce your long-term income?

• Are you planning to continue working?

• Do you understand the tax implications, including the impact on your personal allowance?

You can request a pension estimate from Teachers’ Pensions or use the online calculator to see how different retirement ages affect your income.

Final thoughts

You do not have to take your teacher’s pension at age 60. Your pension is flexible, and you can choose to take it earlier or later depending on your circumstances. Taking it before 60 may reduce the amount you receive, while delaying it could increase your income in later life.

Before making any decisions, it is wise to check your pension statement, explore your options using the Teachers’ Pensions website, and consider speaking to a financial adviser for personalised guidance.