Bank Holiday as Last Day of Working?

[BeamishStout]

Just looking forward to 2018 and my impending retirement.

My 60th birthday falls on the day after a bank holiday.

When I put in my notice, in which I stipulate my last day of working, does anyone know if I have to stipulate a 'working day' (i.e Monday to Saturday) as opposed to a 'bank holiday day'. I'm assuming that if you retire at 60 it really means you are only working up to 59 years and 364 days of age. Don't really want to spend my 60th birthday working - too busy celebrating

[heapsy]

Just looking forward to 2018 and my impending retirement.

My 60th birthday falls on the day after a bank holiday.

When I put in my notice, in which I stipulate my last day of working, does anyone know if I have to stipulate a 'working day' (i.e Monday to Saturday) as opposed to a 'bank holiday day'. I'm assuming that if you retire at 60 it really means you are only working up to 59 years and 364 days of age. Don't really want to spend my 60th birthday working - too busy celebrating

As long as you give the minimum period of notice (2 weeks I think) then you dictate when. Nothing to stop you giving them, say, 4 weeks notice, as a good will gesture. Entirely up to you. You are now required to resign from your job, instead of retiring on a set date. This came in when they scrapped the traditional retirement age, 60/65. You could, if you wish, continue for a while, say until Christmas, etc, etc, depending on your birthday. In my case, mid August. Nothing to stop you going on for much longer, if you wanted, but if, like me, you will have put the years in, you'll probably have had enough. Ps, how about knocking it on the head on a friday before a weekend off? Just imagine, your first day of retirement being a Saturday. Just a thought.

[BeamishStout]

Thanks for your thoughts heapsy

Possibly the only reason why I might defer leaving until the end of the month might be the hiatus between last pay from RM and first pension payment. As I understand it, if I elect to take pensions at say 60y (early April) but keep working for another 4 weeks my first pension payment would be at the end of April 2018 so I would not need to dip into any savings in that 4 week period.

Another thought that did cross my mind after reading the RM docs relates to the pension supplement payable until State pension age. I see that at the bottom of page 8 (section C booklet) it states that 'If you remain in company employment ......then the pension supplement is not payable'. I take it from this that if I were to remain in employment after taking NRA60 and NRA65 benefits then I would not receive the pension supplement until I had ceased working.

And yet another thought comes to mind with regard to working out the maximum lump sum I can take when I take my pensions. According to Chesterfield, the Capital value of my pension pot includes the supplement (see below) but if I don't get it(the supplement) initially (due to reasons in previous paragraph) this will drastically alter my tax-free lump sum entitlement. BTW I have put in money into AVCs specifically to maximize my tax-free lump sum without recourse to diminution of pension.

Standard Annual Pension (+Supplement payable) x 20 + Standard Lump Sum + AVC = Capital Value

Any thoughts ?

[RobertT]

As heapsy has alluded to, there is no longer any compulsion to retire at a certain age, that was changed in 2011. So it’s now more a case of resigning and taking your pension!

From what you say, I assume your 60th is on Tuesday 3rd April? So Personally I’d be inclined to make the Saturday or perhaps the Good Friday my last day. The only benefit from officially continuing to work until the Bank Holiday Monday would presumably be another days pay.

You will need to give 1 weeks notice.

Also consider any unused holiday entitlement you might have, such as odd days. You might be able to take those in your last week and effectively retire a few days earlier.

Standard Annual Pension (+Supplement payable) x 20 + Standard Lump Sum + AVC = Capital Value

That might be a typo but, as you’re in Section C(as you get a supplement)you don’t get a standard lump sum, but have the choice of giving up some pension to get one. So your sum should read:

Standard Pension(+supplement) x20 + AVC’s = Capital Value

You can then take 25% of the capital value, ideally funded completely by AVC’s, and so preserving your maximum pension.

[BeamishStout]

As heapsy has alluded to, there is no longer any compulsion to retire at a certain age, that was changed in 2011. So it’s now more a case of resigning and taking your pension!
From what you say, I assume your 60th is on Tuesday 3rd April? So Personally I’d be inclined to make the Saturday or perhaps the Good Friday my last day. The only benefit from officially continuing to work until the Bank Holiday Monday would presumably be another days pay.

Would prefer to go that way if I am brutally honest

Also consider any unused holiday entitlement you might have, such as odd days. You might be able to take those in your last week and effectively retire a few days earlier.

Or maybe use those accrued days + 2 days entitlement for April 2018, retire at the end of the month but effectively only work 3 weeks!

Standard Annual Pension (+Supplement payable) x 20 + Standard Lump Sum + AVC = Capital Value

That might be a typo but, as you’re in Section C(as you get a supplement)you don’t get a standard lump sum, but have the choice of giving up some pension to get one. So your sum should read:

Standard Pension(+supplement) x20 + AVC’s = Capital Value

You can then take 25% of the capital value, ideally funded completely by AVC’s, and so preserving your maximum pension.

Not a typo but from a reply from Chesterfield! Perhaps they did not realise I was in section C Anyway the most important thing was their confirmation of the supplement being used to calculate the capital value of pension and its effect on my tax-free lump sum calculation.