Voluntary Retirement or Resignation

[TitanTim]

Hi all,

Just wandered if anyone has any experience or knowledge of the difference between Voluntary early retirement and resignation.

I work for a Local Authority and coming upto 40 years service, I'm 56 so could take voluntary early retirement. I had planned on maybe taking retirement in the next 2/3 years which woud mean asking for my figures next year as it takes 12 months to sort it out :roll: so will by then have just under 43 years service.

Currently I'm not enjoying the job anymore and pretty much itching to go as soon as I can which has then got me thinking what the difference is between resigning and retiring, I'm sure there are differences but unsure if resignation is a viable option and how this affects your pension. Unsure if its even a daft question :lol:

I have tried some Googling but the info isn't that clear for the UK.

If anyone has any idea would be good to hear.

Tim.

 

[Argyll Andy]

Hi all,

Just wandered if anyone has any experience or knowledge of the difference between Voluntary early retirement and resignation.

I work for a Local Authority and coming upto 40 years service, I'm 56 so could take voluntary early retirement. I had planned on maybe taking retirement in the next 2/3 years which woud mean asking for my figures next year as it takes 12 months to sort it out :roll: so will by then have just under 43 years service.

Currently I'm not enjoying the job anymore and pretty much itching to go as soon as I can which has then got me thinking what the difference is between resigning and retiring, I'm sure there are differences but unsure if resignation is a viable option and how this affects your pension. Unsure if its even a daft question :lol:

I have tried some Googling but the info isn't that clear for the UK.

If anyone has any idea would be good to hear.

Tim.

Tim, is the voluntary/early retirement at the Authority’s request/suggestion?

Also should only take 90 days from handing in your paperwork to initial pension payment being made

Andy

 

[TitanTim]

Hi all,

Just wandered if anyone has any experience or knowledge of the difference between Voluntary early retirement and resignation.

I work for a Local Authority and coming upto 40 years service, I'm 56 so could take voluntary early retirement. I had planned on maybe taking retirement in the next 2/3 years which woud mean asking for my figures next year as it takes 12 months to sort it out :roll: so will by then have just under 43 years service.

Currently I'm not enjoying the job anymore and pretty much itching to go as soon as I can which has then got me thinking what the difference is between resigning and retiring, I'm sure there are differences but unsure if resignation is a viable option and how this affects your pension. Unsure if its even a daft question :lol:

I have tried some Googling but the info isn't that clear for the UK.

If anyone has any idea would be good to hear.

Tim.

Tim, is the voluntary/early retirement at the Authority’s request/suggestion?

Also should only take 90 days from handing in your paperwork to initial pension payment being made

Andy

Hi Andy, thanks for the reply. No its not at my employers request, hence it would be voluntary retirement on my part.

Another hope is many Local Authorties go through service reviews each year to try and save money and there is always the chance they could make you redundant in which case for me that would mean receiving full pension benefits as if I had worked upto 67 years of age, but its not a certainty.

I wasn't sure if resigning instead affects how your pension is paid out.

Tim.

 

[Argyll Andy]

Hi all,

Just wandered if anyone has any experience or knowledge of the difference between Voluntary early retirement and resignation.

I work for a Local Authority and coming upto 40 years service, I'm 56 so could take voluntary early retirement. I had planned on maybe taking retirement in the next 2/3 years which woud mean asking for my figures next year as it takes 12 months to sort it out :roll: so will by then have just under 43 years service.

Currently I'm not enjoying the job anymore and pretty much itching to go as soon as I can which has then got me thinking what the difference is between resigning and retiring, I'm sure there are differences but unsure if resignation is a viable option and how this affects your pension. Unsure if its even a daft question :lol:

I have tried some Googling but the info isn't that clear for the UK.

If anyone has any idea would be good to hear.

Tim.

Tim, is the voluntary/early retirement at the Authority’s request/suggestion?

Also should only take 90 days from handing in your paperwork to initial pension payment being made

Andy

Hi Andy, thanks for the reply. No its not at my employers request, hence it would be voluntary retirement on my part.

Another hope is many Local Authorties go through service reviews each year to try and save money and there is always the chance they could make you redundant in which case for me that would mean receiving full pension benefits as if I had worked upto 67 years of age, but its not a certainty.

I wasn't sure if resigning instead affects how your pension is paid out.

Tim.

Hi Tim, if it’s not at their request there’s no benefit/detriment/difference as to how you leave apart from one thing if you resign you’ve just left, if you retire you get access to your pension.

Re enhancements, unfortunately even given a service review there’s not much benefit at your age, particularly with your service years. One of the big bonuses for someone going via a service review is there pension enhancement, not their redundancy payment but it can only be enhanced to a maximum of 40 yrs, you’re there already……….

One thing maybe to consider is flexible retirement. As long as you alter your contract by 20% you can access all your pension benefits, lump sum etc but are then reemployed on a new reduced contract. The most popular one is dropping to 3 days tue-thu. A lost of employers are open to this as it allows them to employ your replacement while you’re still there. You can also renter the pension scheme for the PT’post and get another lump sum/small pension. Where this really works is if you can bang lots 0f money into AVC’s as the tax relief boosts the pot quite quickly.

Also means you’re slightly financially better off per week, 2.5 days pension, 3 days salary and also your lump sum in the bank/mortgage paid off etc etc

 

[PointedMarlin]

I can’t advise either way & wouldn’t want to but I’m surprised you’ve been advised it takes 12 months to get access to your pension figures/potential redundancy (if that’s on the cards)

I’m a teacher & was made redundant when working in a Local Authority school, I was notified at Easter my job was at risk of redundancy & a few weeks later I had my settlement valuation. A month tops.

I wanted to post to say check that 12 month information (unless it’s a typo)

 

[Mr Tidy]

Like others have said I don't think it affects your pension whether you resign or retire early.

I took my pension early in my last proper job just before the end of the tax year in 2010, because that was when the rules changed from being able to take it at 50 to having to wait until 55. I was 51 at the time so it was take it now or wait 4 years!

Anyway I did resign later that year and found I could get by on my pension and a couple of much less stressful part-time jobs.

But if redundancy might be a possibility it would be a shame to miss out on that with 40 years service!

Good luck whatever you decide.

 

[TitanTim]

Tim, is the voluntary/early retirement at the Authority’s request/suggestion?

Also should only take 90 days from handing in your paperwork to initial pension payment being made

Andy

Hi Andy, thanks for the reply. No its not at my employers request, hence it would be voluntary retirement on my part.

Another hope is many Local Authorties go through service reviews each year to try and save money and there is always the chance they could make you redundant in which case for me that would mean receiving full pension benefits as if I had worked upto 67 years of age, but its not a certainty.

I wasn't sure if resigning instead affects how your pension is paid out.

Tim.

Hi Tim, if it’s not at their request there’s no benefit/detriment/difference as to how you leave apart from one thing if you resign you’ve just left, if you retire you get access to your pension.

Re enhancements, unfortunately even given a service review there’s not much benefit at your age, particularly with your service years. One of the big bonuses for someone going via a service review is there pension enhancement, not their redundancy payment but it can only be enhanced to a maximum of 40 yrs, you’re there already……….

One thing maybe to consider is flexible retirement. As long as you alter your contract by 20% you can access all your pension benefits, lump sum etc but are then reemployed on a new reduced contract. The most popular one is dropping to 3 days tue-thu. A lost of employers are open to this as it allows them to employ your replacement while you’re still there. You can also renter the pension scheme for the PT’post and get another lump sum/small pension. Where this really works is if you can bang lots 0f money into AVC’s as the tax relief boosts the pot quite quickly.

Also means you’re slightly financially better off per week, 2.5 days pension, 3 days salary and also your lump sum in the bank/mortgage paid off etc etc

Thanks again Andy, I have thought of the flexible retirement route, possibly working 3 days a week and forefeighting my team leader status and responsibilities so that might be an option, it is at their descretion though and they have to make at 40% saving on the salary. In all honesty not sure if its worth it as the job just isn't floating my boat but it might be more tolerable with less stress and responsibilties, something to think about anyways.

Tim.

 

[TitanTim]

I can’t advise either way & wouldn’t want to but I’m surprised you’ve been advised it takes 12 months to get access to your pension figures/potential redundancy (if that’s on the cards)

I’m a teacher & was made redundant when working in a Local Authority school, I was notified at Easter my job was at risk of redundancy & a few weeks later I had my settlement valuation. A month tops.

I wanted to post to say check that 12 month information (unless it’s a typo)

Thanks alot, I have checked on this and it is 12 months unfortunately, why I was thinking of the resignation route. I'm wandering with yourself the faster time was due to redundancy which I guess would speed things up as opposed to taking voluntary retirement.

Tim.

 

[TitanTim]

Like others have said I don't think it affects your pension whether you resign or retire early.

I took my pension early in my last proper job just before the end of the tax year in 2010, because that was when the rules changed from being able to take it at 50 to having to wait until 55. I was 51 at the time so it was take it now or wait 4 years!

Anyway I did resign later that year and found I could get by on my pension and a couple of much less stressful part-time jobs.

But if redundancy might be a possibility it would be a shame to miss out on that with 40 years service!

Good luck whatever you decide.

Thanks for the info some thinking to do me thinks. The problem with Service reviews is I have no idea when they will take place and whether I would be offered redundancy, ideally what I would prefer. Ironically its the past few service reviews where I have lost staff in my team which haven't been replaced so I have been doing the work of 2 people the past 18 months and for the only person left in my team, if you can call it that when they are on leave. Basically had enough and thinking its time to leave, stress for me isn't really worth it.

Think I can start by requesting my figures for now and for 2 to 3 years time and see how they compare and whether its worth staying on for a few years more.

Tim.