Planning for retirement
It's a great idea to plan ahead to make the transition to retirement as smooth as possible.
A really good way to start planning for retirement is to check what pensions you have, and more importantly, what they will pay you.
It's worthwhile spending some time every now and then adding up all your pensions. This will give you a good idea of how much income you will have in later life.
Get updates from all my pensions
Start getting in touch with all your pension providers to find out how much pension you have with them and how they will pay this to you when you are ready to access it.
Track previous pensions
You might have lost track of a pension, or even have a pension from an old job you didn't know you had. The Government has a helpful website where you can find all your pensions on the left.
What type of pensions are they?
Check which type of pension you have. There are two types of pension in the UK:
1. Defined benefit – this pension is linked to your length of service and your salary. They are sometimes called “final salary” pensions. They promise a specific income and you’ll receive a guaranteed amount of pension for life, and part of this usually passes to your dependents when you die. You will also be able to take a tax-free lump sum.
2. Defined contribution – with this pension you build up a pot of money that goes up and down depending on contributions that go in, and investment performance. You will not know how much will be in your pot until you take it. You can use this pot to provide a regular or flexible income.
If you are unsure which pension you have, ask your provider or click on the button on the left.
Check your State Pension
The State pension has changed in recent years, so it is worth checking your State pension from time to time. Find out all about your State Pension on the left.
How much money do I need to retire well?
Step 1 - check yourself against the Retirement Living Standards
The Pensions and Lifetime Savings Association seeks to help people by coming up with figures for the sort of budget you might need in retirement depending on whether you are targeting a ‘minimum’ ‘moderate’ or a ‘comfortable’ standard.
TAKEWAY ACTION
Get up-to-date figures from all your pensions, including the State Pension, and compare yourself against the Retirement Living Standards. Remember, these are amounts you need after tax, and assume you will not have mortgage or rent costs in retirement.
Step 2 - decide what to do next
If you're on track for the level of retirement you're hoping for, then keep on going.If you are behind where you would like or need to be, then you still have time to save more money.
If you can afford to, saving more money will boost your retirement income and bring you closer to the level you are hoping for.
5 years to go
Start thinking ahead to when you might retire, and where you might live
Check all your pensions again
Retake the steps from 10 years out and make sure you are still on track for the retirement income you need. If not, you still have time to save more if you can.
Book a place on a pre-retirement course
Ask your Diocese when their next pre-retirement course will be and book yourself a place. You can usually invite your spouse or civil partner. If your Diocese is not running a course, you might be able to attend a neighbouring Diocese’s course.
Where do you want to retire to
Deciding where to live when you retire can be exciting, but also very daunting. Picking the right property is just as important as the area you want to live. It is important you think about how suitable the property and area will be when you first retire, and if it is still suitable in later life.
Try not to leave this too late. Rushing to find a retirement property can add more pressure. The earlier you start looking, the more options you are likely to have. Our Housing team might be able to help you find a retirement property.
Here are some helpful questions to ask yourself:
- What type of property will I live in now, and is this suitable long term?
- Will I have the resources to buy my retirement property, or will I need help?
- Is there a Church nearby?
- Where do I want to live in retirement? Do I want to be closer to family or friends?
- Does this area have good transport links such as buses and trains?
- Are there shops nearby?
12 months to go
Start thinking ahead to when you might retire, and where you might live
Decide when you want to retire
One of the hardest parts of planning for retirement is deciding when to retire. You can currently access your pension from age 55, but the right age for you will depend on your circumstances and your retirement plans.
Before we can pay your pension, you need to give up your current position. This does not mean you have to give up work altogether. You can take up future positions within the Church or outside the Church. This does not affect your pension.
Once you have picked a date you intend to retire, follow these steps.
9 months before retirement – speak to your Bishop
Start conversations about retirement with your Bishop or Archdeacon. This can help you set a retirement date.
6 months before retirement – start speaking to us
Start speaking to us. Ask us for a retirement quote. We will send you some forms to complete so we can pay your pension. It doesn't matter if your retirement date changes after we've sent you your forms.
3 months before retirement – give your notice
Give formal notice to your Diocese and sign your Deed of Resignation. You may also be asked about your thoughts on any future ministry.
Apply for Permission to Officiate
If you would like PTO, you need to apply for this. Speak to your Bishop or Diocese if you would like to apply. If you move Diocese in retirement, applying for PTO can take longer, as extra checks might be needed. Usually applying for PTO takes about 4 months.
You may want to apply for PTO before you retire or give yourself time to settle into retirement and your new surroundings first.
Can I receive a stipend and a pension?
Yes. If you resign your post and start to take your Clergy pension, you can take up another stipendiary post later on.
This will not affect your Clergy pension, but you must give yourself a 6-month break between posts. If you start a new stipendiary post, you will earn more pension in NEST. You will not earn more Clergy pension.
Moving between Diocese
If you move to a new Diocese when you retire, you can ask your current Diocese to inform your new Diocese. This can help your new Diocese welcome you into the area.
You may be asked to have an induction with your new Diocesan safeguarding officer.
You can usually stay in your parsonage for up to 3 months after you retire.