teachers pension AVC's for 29 year old

joagon

I was having a conversation with a colleague the other day who recommended I pay AVC's into my pension fund pot. I've only heard of people doing this closer to retirement age, however, I've been told that any additional voluntary contributions I make will be matched by my employer. Is this correct?
I'm a 29 year old, female primary school teacher, would this be a sensible option for someone my age? I do plan to have children at some point and take time off work to care for them. Would AVC's made now offset the dent this would have on my final pension?

...first post :j

Academic

Although I'm not familiar with the specifics of the TPS I'm pretty sure that any additional voluntary contributions you decide to make will not be matched by your employer. However you will get tax relief on your contributions.

As I'm sure others will point out AVC's aren't necessarily the best way to make further contributions to your pension pot (there are exceptions to this generalisation such as when your AVC can be utilised to contribute to your tax free lump sum).

I'd get some advice (either from an IFA or possibly the union) regarding this issue rather than listening to colleagues who sometimes have 'confused' notions regarding this important matter.

blackeberg

Your employer wouldn't match an AVC contribution. For the past couple of years there has been an option to buy an additional pension. At todays prices you can buy up to £5200 per annum for your retirement. You can buy this in small blocks using a lump sum or regular payments. Based on my recent experience each £500 would cost £5080 if paid as a lump sum (you would need to claim the tax back). If I were to die first then my partner would receive an annual payment of £250. Once a sum has been purchased it goes up in line with RPI. The cost of buying additional pension is slightly lower without the partner option.