Should I stop paying into teacher pension to save a deposit?

kidmugsy

jem16 wrote: »

However most teachers are like most other people in that many don't actually understand what their pension scheme is all about and how much they would actually lose by opting out even if just for a short time.

That is a very powerful argument for scrapping the TPS; if you are right it clearly doesn't do its job of attracting and retaining staff. If it turned out to mean you had to pay teachers more, so be it.

System

Totally agree with all comments about opting out of TPS as madness.
I do not believe I am being over-sensitive or paranoid with my comments, but incorrect perceptions sometimes do make me bite, rightly or wrongly.
I agree that most people on this thread were making useful suggestions and for the most part agree with them.
However, over the time I have been reading these forums on several threads there have regularly been comments about pensions for certain groups that are simply not fair. Most of the time I can take it in good part but occasionally I feel the need to respond. No offence was meant.
Generally though, the thrust should be to improve the pensions of everyone. However, I do not feel this will be achieved by demonising those who are lucky enough to have decent pension provision. This is mainly carried out by those who follow the view of 'divide and rule'.
Lord Hutton made it clear in his public sector pension review that there should be 'no race to the bottom' but rather a need to encourage other organisations to improve the pension prospects of all people.
I apologise for going off topic but again felt the need to respond. I did not want people to get the wrong impression of me or cause offence.
However we are all entitled to rant occasionally!!
Best wishes
P.

PS Note to OP. Stay in the scheme!!!!

Miss_Moneysaver

Hi,


No, carry on paying into your pension schemes.
How old are your children?
Paying rent like that is throwing money away in my opinion and I second what a previous poster said about north east England. We have a 4 bed detached in a lovely area and we paid £160K 4 years ago (was worth £200k at the time but seller wanted a quick sale). We are close to a lot of nice places. It is a shame you can't relocate as you would be quids in.


NHS worker here too! People still say that our pensions are still better than others even with the 2015 changes.

GwylimT

OP, you have said that a mortgage would be higher than your rental payments, with these higher payments, which could change as the interest rate changes, could you then afford to opt back in to your pension?

Do you already have significant savings as a £12k deposit is peanuts where you are planning to buy.

adindas

Oh No. Please do not do that, you will regret it later ...

The teachers pension a long with other civil servants pensions is one of the best in this country considering the amount of contribution paid to your pension basket by your employers.

If you do not pay your employer will not pay as well ....

MRMX9

I don’t think this applies to the Teachers pension scheme yet but since 1 April the local government pension scheme has a new ‘50/50’ option allowing you to pay in 50% of the contributions for a 50% pension whilst retaining the full value of the other benefits (e.g. death and ill health) of the scheme.

As has been said there are other savings you should make first – but this might become an option in future for teachers who wish to stay in the scheme but are struggling with their full contributions.

seven-day-weekend

Decent area on the borders of Staffordshire and Shropshire countryside but also accessible to Wolverhampton and Telford:

http://www.rightmove.co.uk/property-for-sale/property-44777656.html

Good school within catchment (there are others too): You could teach at one of them.

http://www.cc-hs.com/ofsted.php

In the Midlands....so easy to get virtually anywhere in the country.

Keep your pension where it is and move somewhere cheaper.

kidmugsy

excelpaul wrote: »

Generally though, the thrust should be to improve the pensions of everyone.

On the contrary, government policy should be aimed at increasing the wellbeing of everyone.

excelpaul wrote: »

Lord Hutton made it clear in his public sector pension review that there should be 'no race to the bottom' but rather a need to encourage other organisations to improve the pension prospects of all people.

Lord H was indulging in mindless propaganda.

paparossco

You would regret it in the long run. Ignore the Gross pay figure and work with what you have Net.

Bootsox

Has the OP factored in the collapse of house prices once interest rates start going up?